|
        
|
|
Profile: Astley Hire Forty years of growth As it celebrates its 40th Anniversary, Astley Hire continues to expand. Alan Guthrie visited the independent’s new Leigh headquarters to discover the reasons for its success. Like many successful businesses, Astley Hire had humble beginnings, which trace back to a spare-time operation started in 1966 by the late Cyril and Mildred Dorricott. Cyril Dorricott worked for Hireplant, a hirer of large construction equipment based in Astley, approximately halfway between Manchester and Wigan. He detected growing demand for pumps from motorway building contractors and, as these were too small for Hireplant to offer, he decided to hire them out himself. He bought some 2in Goodenough pumps and operated his fledgling business from the family’s grocery and hardware shop in Astley, which his wife ran. As he worked during the day, he serviced the pumps during weekends and evenings, while Mildred Dorricott took orders and, after putting the closed sign up at the shop, made deliveries throughout the northwest using a Morris Minor pickup. Brisk business Business was brisk and in 1968, Cyril Dorricott committed full-time to Astley Hire, as it was then called, and added a steadily increasing range of tools and equipment, with the grocery business gradually being phased out. Sons Stephen and Michael joined the company in 1973 and 1974 respectively, straight from school, and today they are Joint Managing Directors, with Stephen concentrating chiefly on business development and marketing, and Michael specialising in workshop management, as well as Astley Hire’s burgeoning training operation. “In those early days, business developed rapidly as the concept of hire grew,” states Stephen Dorricott. “We served tradesmen and the general public, and we bought new items for the fleet whenever we were asked for them, from ladders and mixers, to damp-proof course pumps and rotavators. We opened an additional depot in nearby Atherton in 1973, and a move to larger premises in Leigh in 1977 enabled us to combine the two outlets. A year later, we found an even bigger site on an industrial estate in the town.” At one time Astley Hire also had depots in Wigan and Bolton, the latter only just having closed following the company’s relocation in April to its new facility. “Until now, Leigh was at capacity and we needed the extra space at Bolton. Both depots covered the same geographical area, which typically encompasses Preston, Liverpool, Manchester and Cheshire. Bolton, however, lent itself to storing a range of equipment such as alloy towers, cooling machinery and engineering products.” The new premises, in the centre of Leigh, are certainly impressive. Covering 13,500ft2 and with three-quarters of an acre of yard space, they are four times larger than the old facility. The previous owner was a manufacturer of windows and conservatories, and it had split the buildings into different sections for various aspects of its business. Astley Hire has retained this arrangement, to give each area of its operations a dedicated space, including general tool and equipment, cooling and heating, powered access, alloy towers, training and service, as well as a trade counter. “Offering training adds a different dimension to our business and is appreciated by our customers,” states Stephen Dorricott. “We are accredited as an IPAF training provider for instructing people in the correct use of mobile elevated work platforms, and can run PASMA courses on aluminium tower erection.” Astley Hire’s web site also incorporates a Health & Safety advice section, where visitors can download leaflets explaining procedures and equipment for safe work at height, as well as other resources. Astley Hire has continued to grow steadily. It employs 20 staff, a figure that has remained more or less constant in recent times, and yet turnover has increased by approximately 25% in each of the previous two years. The company attributes this to its conscious decisions to target a specific type of customer and to choose suppliers carefully. “Ten years ago we decided not to chase business from cash clients and to concentrate on account customers. One reason was the amount of time and resources spent on explaining to inexperienced people how to use equipment. Also, if a woman, say, came in to collect an item like a floor sander on behalf of her husband, it meant we could not demonstrate it to the person who would actually use it, often leading to unfair complaints. “I
would
suggest
that
we
would
have
to
deal
with
at
least
five
times
the
number
of
cash
customers
to
generate
the
same
amount
of
revenue
as
account
holders,
which
would
stretch
staffing
and
other
resources.
Obviously
we
offer
smaller
equipment
like
wallpaper
strippers,
carpet
cleaners
and
garden
cultivators,
but
the
machinery
is
targeted
at
the
professional
user
who
knows
how
to
operate
it.
“We have four sales staff, each of whom has responsibility for a particular region. Again, they are looking for a certain kind of customer, namely the professional contractor or tradesman. We back up their activity by subscribing to an on-line credit checking service, which enables us to determine in a matter of minutes whether a potential new customer is trustworthy.” Strong supplier relationships Stephen Dorricott, who has recently been elected to the HAE Board of Directors, states that Astley Hire chooses its suppliers with similar care. “We deal with companies we can trust and with which we have built strong relationships, such as Tracmaster, Alto Towers, Wolfe Designs, Stephill, Genie and JLG. We buy a lot of power tools from Hilti and we particularly appreciate its 2-Year Service Warranty arrangement, which eases the pressures on our workshop staff and gives us peace of mind about the equipment’s quality and performance. “We also buy from specialist businesses serving the hire industry, such as Birchwood Products and the Hire Supply Company. The rapid response and quick delivery they can offer is exactly what a hire business depends on. Our air conditioning and heating fleet includes products from Broughton Engineering. Last year we achieved record turnover for our air conditioning business, and this year so far has been similarly busy. There is considerable demand from many businesses that need equipment to cool rooms housing computer servers and telephone equipment that produces a tremendous amount of heat. In offices there is an air conditioning requirement because of the number of computers and monitors that cause the temperature to rise. Air conditioning is increasingly common in cars, and people expect the same climate control in their workplaces. “We monitor all aspects of our operations. Our Hiremate computer software from Advatech enables us to track all the items in our fleet in terms of revenue generated as well as other criteria, so that we are constantly evaluating our performance. If we add any new product to the fleet, or if we employ a new member of staff, we have to be absolutely sure that this will add value to our operation.” Astley Hire’s approach is obviously a successful one. It was named as the HAE’s Hire Company of the Year (less than £1m turnover) in 1996 and won the Association’s Excellence in Training Award for 2000 and 2005. It has built up a loyal customer base and a high proportion of its staff have more than ten years’ service. “It is a vastly different business to the one that was established 40 years ago, and any organisation has to constantly adapt to meet changing market conditions,” states Stephen Dorricott, “but we succeed by supplying the right type of customer with the right products, served by the right staff.” • Executive Hire News › Archives › July 2006 › Profile: Astley Hire › Forty years of growth
|
