18 Jan 2023

Klančar cranes appear, even in Planica

KLANČAR ŽERJAVI d. o. o.

KLANČAR ŽERJAVI d. o. o.

By EY Slovenia

Multidisciplinary professional services organization

18 Jan 2023

Klančar cranes appear even in Planica

“Cranes are very interesting. Through them, without a GDP analysis, you can get a sense of a country’s stage of development. They are symbols of progress and without them, there is no construction,” says Andrej Klančar, Director of the family company Klančar Žerjavi. They provide various maintenance  services for operation of these large construction machines and they also rent out their own cranes and other construction equipment. It is testament to their success that passers-by can observe these mighty structures on the construction sites of many ambitious and far-reaching construction projects. At the end of 2008, Andrej took over as Director from his father, the retired founder Miro Klančar. The story of this family business, from the town of Križ pri Sežani, is one of perseverance, sacrifice, cooperation and trust, qualities which underpin not only their business success, but also their personal relationships. In 2021, they had 21 employees in their team, the company’s revenues amounted to EUR 4.2 million and the added value per employee that year was EUR 82,000.

I said to myself I would not be among those 80% of family businesses which, according to statistics, fail within five years when switching to new ownership and the next generation. I promised myself that I would persevere, no matter how hard it got.
Andrej Klančar,
Owner and Director

Before cranes there were… compressors

The business story of Klančar Žerjavi begins in the 1980s. At that time Miro, who was employed in an export-import company experiencing difficulties,  decided to embark on an independent entrepreneurial journey, which he began with construction compressors. He says that the situation was not favorable to them, but there were always work opportunities and every year they grew a little: “I tell everyone that in addition to honesty and hard work, you also need to persevere and be able to change direction when you encounter a problem.” This is confirmed by his son Andrej: “You need persistence and at least a little entrepreneurial streak. For example, when you know that compressors no longer have a future as your main business, you switch organically, maybe by accident, maybe through inspiration, to cranes, which is what my father did.”

Precisely this change in direction, which Miro made intuitively, was a decisive step towards the company’s current success. As Director Andrej points out, even though cranes were not used in private construction works in Slovenia and workers initially doubted their usefulness, the Klančar family paid no attention. According to Miro, construction workers’ doubts quickly dissipated: “From no one wanting a crane, to them no longer being able to work without one, took about a month.” The Klančar family was one of the first to build their house using a crane, but today their cranes are used in much more demanding projects and terrains. As Andrej says: “We took a crane to the giant ski jumping hill in Planica and we were the first to transport a crane into the mountains, to the Okrešelj plateau, with the help of the Slovenian Army and their helicopter. Our construction credits include the Krško nuclear power plant, the most luxurious hotel in Rovinj and we are currently involved in the largest railway project in Slovenia.” The trust and satisfaction of more than 700 loyal customers testify to their success, as does their nomination as one of the finalists of the regional Gazelle of Primorska in 2021.

Swimming against the current can pay off in business, especially when you swim with people you trust in your personal life.

Team spirit beyond basketball courts

Today, Andrej leads the company so successfully and with such drive that many people might think he had dreamed of occupying this position from an early age. However, it wasn’t quite like that. According to Andrej, he never thought he would ever take over management of the company from his father, who never pushed him in this direction. As a side project during his student years, Andrej made sure that the company was among the first with a website and they still actively use digital marketing and social networks. The project led to the discovery that small steps lead to big changes, a realization that helped him “accept the challenge of entering the company and stepping into his father’s shoes” in 2008. As a former basketball player, he learned during his active training days that success always requires a well-coordinated team. “When I took over the company, my first vision was to make sure it survived for at least five years. The second was to create a dream team of around 10 people who would not just combine their talents, but would live for this company.” He argues that the vision has come true and that through prioritizing their employees, today the company enjoys excellent staff relations. 

Their dedication to their employees and the cultivation of good interpersonal relations was also officially recognized, when they were selected as one of the Zlata nit 2021 finalists for best employer. “When hiring, there is always that lump in the throat; there is always a sense of responsibility in case things do not go as planned. I recruited capable, kind-hearted people for whom, if times became difficult, I was sure I could find a new job within a month,” says Andrej, explaining his approach to being a responsible employer.

When the construction industry collapses, cranes excel

Andrej took over management of the family business during a challenging period. The financial crisis of 2008 would have been perceived by many as an obstacle, but he saw it as an opportunity and they also remained largely unaffected by the COVID-19 pandemic. “Although we felt some consequences of the 2008 crisis when the industry collapsed and construction companies were in a lot of trouble, we still got through it as winners. However, the current crisis has not touched us,” reflects Andrej with reference to the pandemic.

“A crisis always brings big changes. Then you have the choice to either react, or to wait and hope something happens. But nothing happens on its own,” he continues. Andrej believes that new crises always present new challenges that require fresh and different approaches to resolving them. 

When you have entrepreneurship in your blood

The rhythm of life, which is also shaped to some extent by the reality of everyday business life, occasionally involves the third generation of the family. As Andrej says, his wife’s son, 18-year-old Žan, is an “artistic soul whose main passion is the guitar,” but he occasionally earns money by helping out in the company. Their younger daughter, 11-year-old Kiara, according to her father, “has the same talent as me and my father. We like to help people, we’re salesmen. By her own initiative, she sold lemonade on the street with her friend, and they also sold jewelry that they made themselves.” He thinks that people are born with a talent for business. “My mother told me that when I was three years old and we had visitors, I was tugging at people’s sleeves and asking them to buy some stickers that I was collecting at the time,” says Andrej, fondly remembering his first entrepreneurial instincts. 

Reaching for success does not come without sacrifices and the support of loved ones, who are united by the vision of a brighter and better future. “The family suffered a bit, at least in the beginning. I spent whole days in the field, and my wife supported me. Such work does not end after eight hours. Instead, it becomes a way of life,” says Miro, recalling the sacrifices at the time the company was founded. His son also confirms that this really is a way of life: “Leaving work at work? No, you carry your work with you. Business is constantly present somewhere at the back of your mind. It’s never too bad, but I find it almost impossible not to think about it.” 

Such dedication also generates strong attachment. In some companies, older generations are therefore not eager to give the reins to younger generations, but Miro did not want to take this approach: “I always said I would never be like that. I said that I would leave the company in the hands of my son before it got too late and would tell him to just dive in.”

Beyond borders – but not without a strong team

They have become successful beyond Slovenia’s borders, especially in Croatia and Italy. They are already present in Trieste with construction  scaffolding and vertical mast lifts, but they do not have their cranes there yet. But as Andrej says: “Eventually there is a desire to conquer Trieste, then Monfalcone and then go all the way to Venice, which is no further from the border than Zagreb, where we are already working successfully.” In Croatia, their quality is recognized even when it comes to more demanding projects, the most recent being the Urinj refinery.

With all the success and recognition, the question arises, how and where to go next? As a great supporter of family businesses, Andrej points out that their advantage is stability and long-term direction, which is what distinguishes them from other, non-family businesses. The long-term view of the future is reflected in their plans, which are based on solid foundations. He says that in addition to the expansion and conquest of foreign markets, their vision for the future involves strong growth, strengthening fixed assets and most importantly, strengthening the team: “Getting the best orchestra to play this symphony in tune – this is our challenge for the next 20 years.”

Company name: KLANČAR ŽERJAVI d. o. o. 
Number of employees (2021): 21
Net sales revenue (2021): €4.2 million

 

Interviewees:

Miro Klančar, Founder

Andrej Klančar, Owner and Director

Summary

Klančar Žerjavi in a nutshell: persistence, care for employees, opportunities, looking ahead, teamwork.

About this article

By EY Slovenia

Multidisciplinary professional services organization