Executive Hire News › Archives › October 2008 › Executive Report : Executive News

Executive Report: Executive News

Hirers’ rapid response

When extreme weather struck parts of Britain during the first weekend in September, hirers swung into action. “I’ve never known a Saturday like it, Mike Simpson (pictured), Proprietor of Easy Hire in Hexham, Northumberland, told EHN. “From 7.30-5.00 we never stopped, getting all our water pumps, dryers and dehumidifiers out on hire, and crosshiring anything else we could source, to tackle flooded rooms and cellars.

“We are approximately 30 miles from Morpeth, one of the worst affected towns, where 900 people were evacuated. We supplied a lot there, including Obart and Birchwood pumps, and Ebac dehumidifiers.”

Parts of Wales and the West Country were also affected. Rob Holland, Director of Ready Tool Hire & Sales of Carmarthen, said all the company’s dehumidifiers were quickly out on hire, and more had to be bought from The Hire Supply Company to meet demand.

Steve Reeve, Sales Director of Andrews Sykes Hire (whose latest depot opening is reported on page 39), said, “Our guys worked round the clock. We have a branch in Sedgefield, south of Newcastle, and it reported huge demand for pumping equipment.

“A lot of people find us through the internet. In an emergency situation, they Google ‘pump hire’ and we are usually top of the list. Callers ringing our 0800 number are routed to their nearest depot, and if that is busy the call is forwarded to one of two staff mobile numbers. With our logistics infrastructure, we can replenish stocks quickly from other branches when needed.”

Seddons Parts Handbook causes gridlock

Demand for Seddons’ new Parts Handbook caused its fax and phone lines to gridlock following its inclusion in EHN September. Phil Winnington, Seddons’ Sales & Marketing Director, said demand for the Handbook had been “immense” with over 250 fax requests received on the first day that the issue arrived. As this issue went to press, the total had exceeded 730 requests.

“We were positive our Handbook would be of value to hire workshop managers and this exercise has confirmed it. The publication has obviously appealed to hire managers and workshop technicians alike, helping them to identify and source parts more easily and repair more swiftly.” Seddons has also seen a trend towards the repair of equipment, rather than replacement, recently, with the need for parts availability and speed of service key to hirers.

Phil Winnington reported that requests for the Handbook were still coming in on a daily basis and he reassures any hirer who may not have been able to get through that the book is still able available by contacting Seddons on 01204 854612, or fax 01204 854620.

Expanded WLA team offers more

The Will Leftwich Associates (WLA) management consultancy has expanded its team to increase the services it offers.
Several new personnel are former HSS executives, including finance expert Peter Thomas, IT professional David Fisher, supply chain management professional Robin Notley, technical author Marc Bashford, and business development manager Steve Sutch. The founder of the consultancy, Will Leftwich was himself Director of Health & Safety, Environment and Quality at HSS. Also joining the team is marketing consultant, Geoff Abbott.

“Our stark message to hirers is simply, grow your business or die,” says Will Leftwich. “Standing still is not an option. Cooler summers and warmer winters threaten traditional cyclical revenue streams, the ‘credit crunch’ is affecting the housing market, and new opportunities must be explored.

“We can help hirers sharpen up service levels and fleet management, improve supply chain logistics, use IT to understand their business better, and adopt smarter marketing techniques.”

SUPPLY U.K. SETS UP HIRE ALLIANCE

Richard Coffey, the irrepressible MD of leading independent hirer, Supply U.K Hire Shops, has announced his company’s latest initiative in response to what he sees as “the creeping dominance of the ‘national deal’ within our hire industry.”

In launching The Supply U.K. Hire Alliance, he argues, “the growing trend for contractors to reduce their supplier base, whilst understandable, has resulted in passionate independent hirers being cleared out in favour of a faceless PLC, more often than not purely for one single reason – geographic coverage.

“The Supply U.K. Hire Alliance will bring together like-minded companies, which collectively, by addressing the obstacle of geography, can offer the customer a greater level of service and commitment than is currently available.

“The intention is to form an alliance of independents, whose efforts, energy and drive will be co-ordinated and offered to the customer under a single umbrella that enables them to enjoy all the convenience of a single national supplier, but with the far greater benefits inherently offered by the passionate independent.

“We are more frequently being asked by our customers to cover, not only an increasingly wider geographic area, but also a broader range of equipment. Our initial response has been accelerated depot openings and the setting up of our ‘one call’ Hire Direct operation that could source almost any item of equipment on behalf of the customer. However, frustratingly, this has all too often led to equipment being sourced from the national companies we are competing with.

“The Supply U.K. Hire Alliance is the natural solution through a formal relationship of independent partners who would be engaged on the basis of receiving re-hire business based on either a geographic area or for a specialist product range. This Alliance would be completely different to a number of ‘hire brokers’ who operate from a bank of desks and telephones and do not own a single piece of equipment. Operating in a totally self-interested fashion, they all too often impose onerous terms and conditions, which can mean that hirers, trading on minimal margins, have to pick up the damages and losses at the end of a contract at their own expense.

“The measure of the Alliance’s success will be that, not only do independent hirers share the profits of working together, but they also gain the confidence to share reciprocal customer relationships safe in the knowledge that their own customers will be better served and protected in the hands of fellow independents when working outside their area. Rather like the new Executive Hire Club that we have been told about, the Alliance will also allow hirers to better utilise their more specialist equipment whilst also having access to source similarly difficult-to-find kit.”

Richard Coffey invites any hirer interested in becoming part of the Supply U.K Hire Alliance to contact him via the Supply U.K. website www.supplyuk.co.uk expressing an interest in a dedicated region or product range. The Alliance aims to encompass everything from a cordless drill to a mobile crane.

Altrad in talks to buy Belle

Probably the most interesting news story in the last month is the announcement that French-based Altrad Group is in discussions to acquire Belle Group. If all goes well, the deal will be completed before the end of March next year and the respective management teams are expected to remain in place.

Whilst Altrad is far from a household name in the UK hire industry, it boasts an impressive growth record in Europe since its formation in 1984. According to its accounts for the year to August 2007, Altrad achieved a turnover of €419m (c.£335m), an increase of nearly 40% over 2006. Its international turnover (i.e. outside France) now stands at 59% of the 2007 figure.

Altrad manufactures and sells scaffolding, wheelbarrows and mixers, which, of course, is the product that Belle is best known for. Describing itself as No. 1 UK manufacturer of light construction equipment, Belle is also popular with hirers for its compaction and concrete finishing equipment, mini dumpers, power packs and breakers. According to its accounts to December 2007, Belle’s turnover was £52.3m. In the last 18 months, Belle has significantly grown its export sales to now account for 60% of turnover and won a Queen’s Awards for Enterprise in International Trade earlier this year. If the deal is completed, Belle will join another UK mixer brand, that of Baromix, in the Altrad Group, which acquired the Alcester-based manufacturer in 2002.

Belle Chairman and majority shareholder, Ron Blackhurst, considers the proposed Altrad deal to be “an exciting opportunity as it will ensure the product development that has been achieved over recent years can be continued.” The obvious synergies are that Altrad is strong in retail markets in Europe and Belle is a leading brand amongst European hire companies and re-sellers. Belle has also developed markets in the Middle East and USA, which will give Altrad opportunities to develop in these areas.