Kinetics Engineering

From Overalls to Lab Coats

How MGI helped establish growth in automotive, defence, medical and the Fast Moving Consumer Goods markets.

The client

Proudly South Australian and founded in 1989, Kinetics Engineering became the basis for the Kinetics Group of Companies. Kinetics founder, David McDonough, embarked on his first project being an automotive handwash unit providing hot and cold water for trade vehicles. This is still exported globally today.

Along the way, David partnered with Greg West to form Vector Technologies Australia (VTA) which underwent a massive transformation over the past three years from a tier one Automotive supplier to a hi-tech medical device manufacturer and supplier to the Fast-Moving Consumer Goods (FMCG) markets.

The challenge

Vertical integration and innovation has been the cornerstone of the group. The portfolio was strengthened with Toolcraft Australia, which is a valued supplier to the Defence industry as well as supporting group machining requirements. Next was Metalcraft (Trading as Bott Storage Systems) which specialises in high end vehicle equipment solutions including emergency service vehicles. The group today employs around 200 people in 3 countries.

Vertical integration and growing them autonomously presented a significant range of challenges, particularly when the acquisitions and start- ups occurred globally.

David and Greg have formed a great partnership with MGI Adelaide since 2002 with results we are all proud of.

How we helped

MGI Partner Angela Robins was a key supporter during this time. Dealing with global companies had many challenges. MGI supported them and set up a legal structure whereby the businesses and assets were protected.

Angela explains that dealing with multinationals has been challenging at times but one that they worked through and set up the right structures for the future. We looked at reducing risk, as well as tax considerations, particularly with the international business interests. It is all about asset protection and funnelling wealth into the right areas. MGI knows the groups businesses intimately and understands every aspect to get the best results.

“They’ve helped us with planning and securing important grants to transition our business from workers in overalls to a clinical manufacturing-based business. Angela is an integral part of our business.”

– David McDonough, Kinetics Group

The outcome

Today, The Kinetics Group have come a long way from being a manufacturer of a single product to innovating in automotive, defence, medical and the FMCG sectors.

With manufacturing facilities located across Australia, Thailand, Germany, and UK, David and Greg’s portfolio has continued to grow from strength to strength.

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