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Executive Report: “Service drives everything” Nigel Strickland attends the opening of Charles Wilson’s new Bristol branch, and finds that it epitomises the expanding company’s successful business strategy. The hire industry has always been dynamic, and the last ten years have seen a staggering array of business mergers, acquisitions and expansion. To an outsider this fluid state of affairs could suggest an industry in a permanent state of revolution, rather than evolution. However, if we regard this process as evolutionary, it is worth remembering that evolution is often simply summarised as ‘the survival of the fittest’. So for any business to have survived and, indeed, prospered for nearly 30 years in such a turbulent environment, it suggests a ‘fit’ business model. When EHN was invited to attend the opening of Charles Wilson Engineer’s new Bristol depot, we wanted to learn more about its business and why it was confident of success in a highly competitive region. The company, which also uses the CW Plant Hire and CW Tool Hire brands, was founded in 1979, opening its first depot in Harpenden, Hertfordshire. By 1994, it had a network of seven outlets throughout London and the Home Counties. In 2002, another was opened in Birmingham, closely followed by Liverpool in 2003 and Ashford, Kent, in 2004. Not just a ‘plant’ hirer With over an acre of showroom, workshops and yard the new premises in St Werburghs, just off the M32 and close to Bristol city centre, are very impressive. Having a preconception of Charles Wilson as a ‘plant’ hirer, I was immediately struck on arrival by the sign declaring ‘Everything from a 21m telehandler to 1/2in drill’ spanning the gable end of the showroom. So my first question to Justin Eccles, the new Depot Manager, was what exactly the company hired. He pointed out the extensive range of new compact plant, compressors and equipment lined up on the forecourt, but added that the branch carries a complete range of machinery including floor preparation, concrete finishing and access equipment and, indeed, all the items you would associate with a tool hire company serving a diverse range of customers. He states that he was attracted by Charles Wilson’s “professionalism and commitment. Its focus on Health & Safety issues is also impressive. The company has a clear strategy for the next ten years, and I want to be part of it.” Company Board members attended the branch opening, including Charles Wilson Engineers’ Managing Director, David Gallagher, and Director David Wilson, one of the original founders. David Gallagher was keen to point out that the high profile and scale of the new Bristol depot was “a good example of the type of depot Charles Wilson operates, rather than opening three or four small depots,” and that the company could replicate this in “any city where the right location could be found.” He pointed out that the depot openings in Birmingham and Liverpool had come about through people wanting to work for the company, and proposing locations for the new depots. “Finding good people to employ is not a problem,” states David Gallagher. “Our simple lines of communication between hire negotiator and depot manager to the Board means decisions can be made quickly, and this attracts good people. It also creates a genuine sense of teamwork. This includes all members of the Board, who are expected to get out and sell, generating income. Our Health & Safety Director, Mark Wilson, is even looking at ways in which we can sell our expertise to customers by providing Health & Safety audits and other support.” “Constantly refreshing our approach” David Wilson stresses that this close customer contact is driven by an ethos of providing “straightforward dealing. People know value, recognise honesty and simple invoicing with no hidden extras and, above all, great service. We do not offer a single rebate and are not tied to any single customer. There is minimal expenditure on entertaining because customers know, in the long run, it is they who collect the bill. Service drives everything we do and we will work incredibly hard at constantly refreshing our approach, ensuring we remain the ‘new name’ in hire. The future is not about price, it is about service.” The need to constantly reappraise the company’s approach is reinforced by David Gallagher. “We see ourselves as a machinery hire business. If a customer requests a particular range of equipment outside our hire fleet, and our payback criteria works, we will go for it. The company is financially strong with no outside borrowings and based on a very conservative financial model. “There may be challenging times ahead with the recent financial turmoil and a possible credit squeeze. Private sector house building and office development may become constrained, with tax revenues reduced, but on the other hand we have massive public sector projects such as the London Olympics, which we are well placed to serve. A twin track economy is a real possibility.” With the development of a national network under way, Charles Wilson Engineers will face many challenges, and its financial independence and strength will be invaluable. Perhaps its greatest test will be to retain the values that have created it success to date. On the evidence so far, the company has its feet firmly on the ground, and will continue to offer what David Wilson describes as “A first class service, first class products and first class expertise - a simple recipe for success.” • Executive Hire News › Archives › October 2007 › Executive Report › "Service drives everything"
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