FKG nails expansion plans as it focuses on diversification and reduction of risks

THE Wagners are not the only big construction family to come out of Toowoomba. FKG Group has grown to become a $700 million building empire with 800 employees.

Nick Gardner, managing director of KFG Group. Picture AAP/David Clark

THE Wagners are not the only big construction family to come out of Toowoomba.
FKG Group, started by carpenter Francis Kevin Gardner in the 1970s, has grown to a $700 million building empire with 800 employees.

FKG says it is surviving in an increasingly tough construction sector because of its focus on diversification across civil and commercial projects.

Francis Gardner’s grandson Nick Gardner, who heads the business as managing director, said the company was now planning to expand into southern states.

“We have been successful because we have continued to reinvent the business,” said Mr Gardner, whose father Gary remains involved as executive chairman. “We have experienced a lot of low points, but we always had the ability to turn things around.”

He said the booming coal seam gas industry was a big factor in the company’s growth over the past decade.

“We started doing work on roads, desalination ponds and other related infrastructure,” said Mr Gardner. “It helped transform the business.” Nick Gardner grew up working on building sites during the school holidays.

“I got an early taste of what it was like to work in the construction sector,” he said. “I later went on to study construction at university.”

FKG began life as a small residential builder based in the village of Brookstead, 180km west of Brisbane. It later moved its headquarters to Toowoomba and opened offices in Brisbane, Cairns, Mackay, Roma, Townsville and Newcastle.

Mr Gardner said FKG’s strategy was to reduce risk by being involved in a number of different sectors. The company also owns a substantial bank of industrial land.

“We take a long-term view and want a mix of government and private sector jobs,” he said.

“We are now moving into more defence and design work. Often if you have one part of the business that is not doing well, the other parts of the business will be doing well.

“We are expanding into New South Wales and have opened an office in Newcastle. We have plans to grow in southern states but want to do it slowly.”

The company’s major projects in recent years have included the $38 million Cairns Aquarium and Marine Research Centre, the $20 million Brisbane-West Wellcamp Airport Terminal, and $75 million Redbank Plains Shopping Centre redevelopment.

FKG also has worked on the $30 million upgrade of the Warrego Highway from Toowoomba to Dalby and a $106 million liquid natural gas project for Santos.