September 2009
View a digital copy of the
September EHN issue
Executive Report
Executive news
"Fulfilling our potential"
Safety in the spotlight
Local benefits
Bobcat bucks trend
Taking our industry's pulse
Market Report: Floor Care & Surface Preparation
Success on the surface
Latest products
Forum
How much more can we take?
Profile: Griffiths Hire Shops
Griffiths' steady growth
Crosshire
A great deal of nonsense
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Executive Hire News › Archives › September 2009 › Executive Report : Taking our industry's pulse
Executive Report : Taking our industry's pulse
More independent hirers tell us how they are responding to current economic conditions.
Kevin Robertson, Partner, Galloway Hire Tools, Dumfries
"Demand has held up well in our area. Some construction industry workers who have been laid off have now started their own businesses and are both hiring and buying equipment from us, while homeowners, who perhaps used to pay for a gardener every fortnight, are saving costs and doing more jobs themselves. We have recently taken on more workshop staff to cope with the increased workload.
Traditionally, machinery sales have accounted for most of our turnover, but we have been increasing our hire fleet over the last year. Our philosophy is to say ‘yes’ whenever possible, and we take items from our sales stock to meet hire demand for items ranging from strimmers and log splitters, to pressure washers and mixers. We have also just bought our first Timberwolf chipper which is proving popular and commands a good hire rate."
Mike Simpson, MD, Easy Hire, Hexham
"We have been really busy since Easter and we are getting so many enquiries we have recently had to have more phone lines installed. This is a prosperous area with many large properties and, if people cannot get a mortgage to move house, they are extending them with conservatories and adding patios. Small builders and landscapers we deal with are absolutely flat out, leading to constant demand for our Takeuchi mini excavators, Thwaites compact dumpers and Cormidi tracked dumpers, as well as items like cut-off saws and Paslode nail guns.
Many homeowners are tackling work themselves to save money. Local farmers are converting barns into holiday accommodation, and they have to maintain and renovate concrete floors in sheds and yards, creating demand for our Red Band ScreeDemon screeders and Fairport compaction plates.
Another reason we have increased business is that a tool hirer 15 miles away in Ponteland ceased trading a year ago when the owners wanted to pursue other interests. We used to crosshire from each other and had a good relationship, so they were happy for us to acquire their phone number and customer database. We make daily deliveries in that area now and we are considering establishing a presence there if we can find suitable premises, enabling us to further expand the region we serve."
Paul Goodchild, MD, Rentequip UK Ltd, Hunslet
"Gary Cossey and I established Rentequip in January, having previously worked for Supply UK Hire Shops in the Yorkshire region. We wanted to run our own operation and, despite the national media’s pessimism, we have made it work. We initially invested £100,000 on kit, most of which was new, and about 10% we picked up at auctions where nationals were disposing of equipment.
Our customer base comprises general construction professionals and, while new house building work may be down, many other markets remain busy like shop fitting, bar refurbishment and utilities work. We can service the entire Leeds region from our central location and we are close to the motorway network. Many of the national hire groups obviously have a presence close to us, but we are winning business by providing reliable equipment, good service and guaranteeing a rapid response."
Stephen Dorricott, Director, Astley Hire, Leigh
"Times are challenging, but business is still out there. You just have to work harder for it. In a downturn you don’t stop knocking on doors, you knock on more, and we have just employed an additional sales person to cover the Manchester area.
We certainly will not compromise on our hire rates. Customers expect value for money and that does not necessarily mean the cheapest price. How can any hire company genuinely offer free delivery? It invariably means that they will simply deliver on their terms and at a time that suits them, not the customer, and the quality of their backup service must suffer in some area. Offering two weeks hire for one week’s rate, or three for two, also means something has to be sacrificed elsewhere.
Hire is about service. We have sent our staff on more training programmes, and our workshop technicians have been attending courses on additional products so we can win more service business. This builds their confidence and makes them even more productive. Good hirers should stick to their principles, because offering customers reliable kit and quality service is the proven formula for success in our industry."
Andy Buckley, Depot Manager, Fast Hire UK, Bredbury
"We have taken the pro-active decision to re-locate our premises, having previously been at Ashton-under-Lyne. We moved in to the site last month. It was formerly a Hewden tool hire depot that was sold following the Speedy acquisition. We are on junction 25 of the M60 giving excellent transport links, and we are now closer to our parent group, Westgate Holdings, whose other hire companies include the site handling equipment specialist, Ash Hire, and the heavy plant suppliers Arnold Plant Hire and H & C Plant Hire. Between us, we can supply contractors with all they need from a single source with one phone call.
Fast Hire supplies anything from a Stihl cut-off saw up to a 1.5 tonne mini excavator. Business has been slower this year, but it has picked up in recent months and there is definitely work out there. We are constantly renewing our fleet to keep it fresh, with recent purchases including Belle floor saws, pokers and compaction plates, Youngman Boss towers, Takeuchi minis and Thwaites dumpers."
Katrina Theis, Accounts Manager, Wrexham Tool Hire, Clwyd
"The business environment has been challenging, but July was our best month of the year so far and there is still work being done. All our aluminium access towers are out on hire at the moment. Our typical customers include small builders and contractors, many of which regularly undertake work at large local factories and food processing plants. We have also noticed an increase in business from DIY customers.
The Internet is proving a very powerful promotional tool for us, and we are currently redesigning our web site. It already attracts a tremendous number of hits and many people tell us that is how they find us. We have also joined a new local initiative called Wrexham Savers, which offers members incentives when they deal with other businesses in the network. Currently we are offering a 10% discount on equipment hired by a new customer who comes to us through the scheme, and this has already brought results."
Jon Freeman, MD, Toucan Hire Services, with depots in Norwich, Diss and Wymondham
"Business is unpredictable from day to day. Our main customer base comprises small builders and tradesmen, and we have noticed that fewer now come to collect equipment, wanting to keep staff on site. So our delivery vans are on the road virtually all the time, every day of the week.
Something that surprises me is the amount of hire business we are getting for small power tools like angle grinders and mini grinders. Perhaps occasional users who have an outdated machine are now cutting costs by hiring a tool for a one-off job, whereas previously they would have just bought one from somewhere like B & Q. Maybe the trend of buying ‘throwaway’ tools is ending, and hire business could increase.
We will be going to the Executive Hire Show in February. We went this year and touched base with Higher Concept Software, whose Syrinx system we use. It is absolutely rock solid and accurate."
Des Gibbon, MD, Gibbon Equipment Hire, Gwent
"We noticed a decrease in business from November last year through to February. Besides tools and equipment, we have a large fleet of site accommodation and welfare units, which represents a significant proportion of our turnover. With less house building activity, this is probably the business segment that has been most affected, although orders picked up appreciably from July, which suggests sites are now re-opening.
We have taken measures to make our operation as efficient as possible, having introduced a new management accounting system and invested in our workshops to ensure we respond even more quickly to customers, and to maintain consistently high standards. We hold weekly staff meetings to identify new business opportunities. We never want to say ‘no’ to a customer and we are still buying more kit to meet demand. Recent fleet additions include more Kubota mini excavators, Ammann ride-on rollers and Thwaites compact dumpers."
Ray Adams, Proprietor, 5A’s Tool & Plant Hire, Brize Norton, Oxon
"Being located adjacent to the RAF Brize Norton base, we get business from contractors working there. Clients generally range from the MOD and local government, to farmers, engineers and small builders. Turnover has been slightly down this year, but it has picked up again recently and our broad customer base means we don’t have all our eggs in one basket.
The average person coming into the shop is much more positive than a few months ago. Some builders have work booked solid for the next four to five months. Breakers and compaction plates are flying out the door, and our 25 Kubota minis remain popular. We have just added a Timberwolf 150DHB wood chipper to the fleet to cope with material up to 15cm in diameter and its performance has been really excellent. One customer described it as ‘awesome’. Other new additions include Sumner materials lifts. We employ nine staff, have two extensive showroom areas and we are looking to expand in the future, having purchased an acre of land adjacent to us that would effectively triple the space we have here."
David Hare, Director, Hares Hire Services Ltd, Upminster, Essex
"The market is inconsistent, but the situation is by no means as bad as the national media have been making out. For the first few months of this year our turnover was approximately 50% up on the same period in 2008. In May and June business slowed, but it has picked up since.
We are adding new account customers every month.
Many people are having home extensions built and during the summer holidays contractors have been carrying out a lot of work in schools, creating demand for our Euro Towers access equipment. As a flexible independent, we deliver products to site exactly when required and, just as importantly, we ensure prompt collection. Looking ahead, we plan to introduce services dealing with HAV management. We came across the HAVi meter at the Executive Hire Show and we have since added it to our range. I am looking forward already to next year’s exhibition, to see new products and meet familiar industry faces."
Steve Booker, MD, Kentec Tool Hire, Kent
"There is a definite sense that the economic situation is beginning to ease. Over the last month or so, we have seen a remarkable increase in turnover. We have also benefited from centralising our Tonbridge operation. We used to have two offices in the town, one being in a busy high street location that was increasingly hampered by parking problems and other logistical difficulties. We have recently closed it, without making any redundancies, and effectively merged it with our main trading estate premises, having also taken on the unit adjacent.
Demand is strong both at this depot and at our other branch in Snodland, particularly for access equipment. This is being driven by Health & Safety legislation. In recent months we have bought several Pop-Up platforms, following our visit to the Executive Hire Show. We have also purchased Genie scissor lifts and a Niftylift HR12 self-propelled boom lift. On the non-mechanical side, we spent £5,000 last month on more Youngman Boss towers and ladders, and we never seem to have enough of these items, which proves there is work going on."
Paul Punnett, Director, The Hire Shed, Shepton Mallet, with his son Travis
"At the end of 2008, with all the negative comment in the national media, we were apprehensive about the year ahead. However, from the time when people went back to work on 5 January, we have honestly been mad busy. We have had to buy an additional 1 tonne Kubota mini and
1 tonne Hi-Tip and 3 tonne swivel tip Thwaites dumpers for the fleet, and we continue to purchase more equipment as required.
We are a small, dedicated, family owned independent. My wife Taleen assists in running the company, and my 13 year old son Travis now helps with tasks like pressure washing machines that come back off hire. I believe we win business because of our service. If we say we will deliver at a specific time, then we will do it. One of our competitors used to be a nearby Hewden branch but it was closed following the Speedy acquisition, and we have picked up business as a result.
Our customers comprise small builders and homeowners, and many of them are busy, creating demand for our diggers, dumpers, breakers, mixers, compaction plates and the like. Since we were founded 11 years ago, we have increased turnover annually, and 2009 should be no exception." |
