Mount Isa businessman Travis McElligott expands to Townsville

Despite headwinds in construction, a North Queensland businessman has bet big on a turn from mining with an expansion to Townsville. See why he’s investing in NQ.

NorFab general manager Chris Johnstone and owner and director Travis McElligott at the business’ new Townsville facility. Picture: Evan Morgan

A Mount Isa businessman has bought out a business in Townsville to diversify from the mining industry.

Travis McElligott, 30, now employs 90 people after purchasing the Townsville construction steel fabrication business NorFab, complementing his Custom Steel Fab in Mount Isa and Townsville, which does mining industry work.

“The mining industry does have its quiet periods and it’s kind of a little bit opposite to the structural steel industry here on the coast,” Mr McElligott said.

“So when mining slows down, instead of flying our guys out to these mines, we can either fly them here (to Townsville) or we can move fabrication work around … it’s just good having our wings sort of spread over the industry across western Queensland now we’ve got eastern Queensland and two different industries,” he said.

January and February on the mines gets quiet with the Christmas break and budget rejigging, Mr McElligott said.

The Queensland government offers a support payment of up to $20,000 for employers who recruit eligible unemployed jobseekers in regional Queensland. Picture: AFP/China OUT

“So our existing employees of Custom Steel, their job security is pretty well strong now. If there is a downturn in mining we can use them in something else.”

Custom has 40 staff in Mount Isa, 20 in Townsville and the NorFab purchase brought 30 more.

“They’ll be expanding as well, there’s definitely a lot of growth for mining in Townsville.”

Australian residential construction costs have risen 30 per cent during the past two years, KPMG research found.

The biggest mine Custom works at is Glencore. Mr McElligott does not have any concerns about supplying the construction industries, despite supply and labour shortages.

“The growth in the next couple of years (is) for construction. We’ve done our feasibility on NorFab and there’s going to be some growth in the next few years.”

Custom’s profits paid for the purchase of NorFab, he said. The previous NorFab owners retained the aluminium side of the business and now trade as Townsville Aluminium Fabrication.

Originally published as Mount Isa businessman Travis McElligott expands to Townsville