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Market Report: Compact Plant Success in a small city Nigel Strickland visits an independent in Somerset that has increased business substantially by adding compact plant to its fleet. Wells, in Somerset, is officially recognised as the smallest city in England. It is also unusual because none of the national hire companies has a presence there. It is set in a very rural area, with tool and equipment hire apparently adopting a correspondingly low profile - except when the Glastonbury Festival is staged nearby, and the area becomes home to a multitude of generators, lighting equipment and portable toilets. However, dig a little deeper beneath the surface and a thriving hire scene emerges, with a market dominated by a flourishing network of independent hire companies, and where everyone knows nearly everyone else. Nevertheless, do not be fooled into thinking that this is a laid back, cosy business world. Here, good reputations are hard won and well-guarded, with quality of service being the key area of competition. Local hirers appear to have a genuine respect for each other, and of their respective ‘turfs’. Wells Hire Centre is at the forefront in the local area, and since its foundation in 1987, it has established a reputation not only for an excellent tool hire service, but also as a serious force in compact plant, servicing an area extending way beyond the city boundaries. Manager Stuart Selway bought the business from the previous owner in 1993 and, over the next six years, developed the business to the point where further investment was needed if it were to take advantage of the hire opportunities he could see developing in the compact plant market. The next phase of growth In 1999, Ryan Symes, owner of a thriving utilities contracting business, Shannon Plant, and a good customer of Wells Hire Centre, saw the potential, bought the company and provided the finance to begin the next phase of growth under Stuart’s management. With the experience of managing a Yanmar dealership under his belt, Stuart used his understanding of the mini excavator market to establish a what currently amounts to a fleet of more than 30 tracked excavators, ranging from 3/4-8 tonne. Visiting the depot, the dominant yellow of JCB was evident amongst the few machines available in the yard. “The choice of JCB was a simple one,” states Stuart. “Our fleet policy is to hold the newest kit wherever possible, and the range of JCB deals makes that policy easier to maintain. All the machines come with three-year warranties and we can ‘de-fleet’ excavators with a year’s warranty outstanding and achieve the best re-sale price or trade–in value.” The Wells fleet includes four 950kg 8008 models, five 1.5-tonne 8014s and four 3-tonne 803 Supers. Zero tail swing machines offered include two 3.2-tonne 8030s, a 3-tonne 8027 and an 8-tonne 8080 machine. The company says that awareness of the JCB brand is also strong throughout its diverse customer base, which retains a strong agricultural bias. “Local builders, agricultural contractors and landscape companies automatically ask for JCB and associate it with quality and good value,” says Stuart. The association with JCB has now been extended to include the Dumpster range of high-tip dumpers neatly complementing the smaller range of excavators. “Being able to offer a package of minis and tracked carriers or dumpers across the entire fleet has proved very successful.” Complementing the excavator offering is the usual range of attachments, including post-hole augers and breakers. However, the desire to diversify into new areas has led to the introduction of tracked wood chippers and tracked access platforms. “The Hinowa 1470 platform has proved a great success with tree surgeons, being able to gain access through narrow pathways. The very good return achieved by the £200 daily hire rate makes this a popular item for us too,” says Stuart. The ability to offer equipment packages is again evident, with the hirer offering GreenMech tracked woodchippers as a partner for the Hinowa machine. Staff with hands-on experience The
company’s
team
of
six
staff
all
have
hands-on
experience
of
site
work,
with
four
personnel
having
worked
as
machine
operators
in
the
past.
“Our
knowledge
and
experience
means
we
can
offer
the
right
machine
for
every
application.
Although
we
are
a
relatively
small
company,
Wells
Hire
is
well
funded
and
able
to
quickly
take
advantage
of
new
hire
opportunities
that
present
themselves.
It may be based in the smallest city in England, but there is more to Wells Hire Centre than first meets the eye. It has achieved success by offering a high level of service, coupled with an ability to respond quickly to a diverse range of customers and by exploring new ideas in compact plant. So if you are ever motoring along the M5 through the Somerset countryside, remember it is just the cows, and not the hire industry, that move slowly there. • T
01749
674410 Executive Hire News › Archives › November 2007 › Market Report › Success in a small city
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