Executive Hire News › Archives › June 2009 › Forum : Welcome to our good news issue
Forum : Welcome to our good news issue
We are branding this edition as our ‘Good News’ issue for a simple reason that we’re fed up with the constant gloom and doom that the national media has been bombarding us with for the last 12 months. At least our economic woes are taking a back seat for a few weeks as the media concentrates on exposing the greed of our elected Members of Parliament. For once the media is actually working in our best interests, rather than systematically destroying our confidence to a point that so many people are almost paralysed
by indecision.
Don’t get us wrong. Just because we’ve branded this as our Good News issue, it doesn’t mean that we think we’re over the worst of this recession. Far from it - just read City News to understand the impact this recession is having on Speedy. Its principal market is construction, which continues to polarise, with contractors increasingly reliant upon government spending while the private sector continues to suffer badly. Speedy doesn’t believe the construction market will show any meaningful signs of growth for another 12 to 18 months.
In compiling this Good News issue, we have contacted independent hirers across the UK and Ireland to ask them how they are faring in these challenging times. Check out 4 Hire’s “explosive growth” in Jersey. Study this month’s centrespread on SHC Hire Centres’ new outlet in Northallerton. With a successful business model based on serving customers in rural market towns, Claire and Nick Gains are “weathering the recession and our view is that we will emerge stronger by sticking to our plans.” They have spent £500,000 on equipment and fitting out the new depot - a substantial investment by any hirer’s standards.
On a smaller scale, but no less compelling reading, is the story behind Absolute Power Tools in Melksham. Two couples looking for new challenges decided to go it alone last year and “are thrilled at the way it has gone in the first six months.” Crosshire also adds the positive note, “we are on the move at last. My staff have been working overtime for the first time since Christmas.”
Brandon’s rebuilding of its Constitution Hill depot in Birmingham following a serious fire certainly rates as a good news story. It demonstrates how the decisive action of a team working together was able to get the business up and running again within two days.
In adapting to a receding market, Speedy has cut its workforce by 17%. For Andy Webber of Plymouth Tool Hire, this has proved to be good news. Needing more people to cope with his growing demand, he has recruited three experienced hiremen who were made redundant from the local Speedy depot. Brandon’s closure of its depots in southern Ireland has made it possible for John Morrissey of Xpert Hire in Naas “to seek a sensible hire rate.” Much of 4 Hire’s growth - not to mention an additional £400,000 investment - has resulted from Hewden’s closure of its depot on the island.
This is clear evidence that independents are picking up business from national hirers. It will be interesting to see if this trend continues in the months ahead. Nigel Blandin of 4 Hire is adamant, “independents know that it is our customers that pay the wages. National hirers are more concerned with shareholder value. It is all about looking after customers. Smaller hirers will do well in this recession, whereas large companies will haemorrhage money, achieving massive turnovers without any profit.”
By taking our industry’s pulse, we will continue to monitor its progress in the coming months. Looking ahead, confidence is the key to our recovery - as is a more positive outlook. Our confidence has increased following a number of positive discussions with various leading industry players at SED. There are opportunities to grow our businesses, even in these challenging times - we must take them as they come along. Rather than wait to read about what others are doing in our next Good News issue, go out and make it happen for yourselves.
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