October 2009
View a digital copy of the
October EHN issue
Executive Report
Executive news
Taking our industry's pulse
On show at Saltex
Accurate accounts
Market Report: Heating & Lighting
Targeting the hot spots
Latest products
Market Report: Temporary Power
Powerful opportunities
Latest products
Forum
"Overwhelming support" for 2010 Show
Profile: Fairview Lifting Gear Services
Height of achievement
City News
Stock market recovery
Crosshire
Don't give profits away
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Executive Hire News › Archives › October 2009 › Executive Report : Taking our industry's pulse
Executive Report : Taking our industry's pulse
This month we talk to hirers who exhibited at Saltex about current market conditions and future prospects in grounds care and related segments.
Morris Leslie, MD, Morris Leslie Ltd, Perth
"Our Group includes diverse hire activities chiefly in three regions, which we have developed mainly through acquisition. These comprise operations offering site accommodation and general plant in southwest England, tool, plant, utility vehicle and event hire in southeast England, and general plant in Tayside. The market has obviously been challenging this year, but business has been steady. In fact, we are currently in talks about another hire company acquisition.
We have had to rationalise, cut back in some aspects and reshape accordingly, but it is easier for us to adapt than many larger organisations. We have taken all the pain and we are now ready to move on. Our regular machinery and equipment auctions in Perth continue to be very popular, offering items ranging from tools to commercial vehicles, and this month we are introducing on-line auctions for repossessed equipment."
Steven McInroy, MD, SGM (UK), Inverkeithing
"We are ticking over nicely, with nine depots throughout Britain, and we are looking forward to 2010. As well as hiring equipment to clients like councils and contractors, we are winning more business by carrying out servicing and maintenance work on machines that organisations own themselves. The scale of our operation means we can often do this more effectively than they can, and we are also able to source spare parts at very keen prices. In this way we can do more business with our existing clients.
Currently, we are talking to a significant number of local authorities about all-inclusive hire and servicing packages, and in many cases we can provide a cost-effective alternative to running in-house workshops themselves. There is no doubt that public sector budgets will be under pressure next year, and that’s why we are promoting the benefits that can be gained from more efficient servicing of machinery, as well as its procurement."
Paul Knibbs, Sales Director, WCR Vehicle Hire, Wednesbury, West Midlands
"We have just had a record quarter. Many local authorities are being very careful about investing in capital equipment and are replacing old vehicles they own with new ones on hire from us. This is particularly the case following difficulties some councils encountered following the collapse of Icelandic banks last year.
Our fleet of more than 500 municipal vehicles includes refuse and recycling trucks from 7.5-32 tonne, 99% of which are under three years old. We hire vehicles for periods from one day up to several years. Being based in the Midlands, we can guarantee that if someone requests a truck by 4pm, we will have it with them by 6am the next day if required, wherever they are in Britain. People need kit quickly and they will pay a sensible rate for a good service."
Andy Lathwell (right), Hire Manager, Browns Groundcare Hire, Leighton Buzzard, with Dave Salmon, Chelmsford Depot Hire Manager
"We had a disappointing July and we wondered whether the market might be beginning to decline, but August was strong and our forward orders are very good. We will be watching what happens after next year’s General Election. Many of our local authority customers fear their budgets will be placed under even greater pressure. However, grass always has to be cut and amateur sports clubs need parks to play matches in, so grounds care should be given a high priority.
We keep our fleet fresh and we replace equipment as necessary. This year we have also bought more Hayter, John Deere and Ransomes mowers, and we have just added GreenMech’s brand new Quad-Chip 150 chipper, which looks like a really good hire machine. The challenging economic climate certainly seems to have spurred suppliers to develop innovative products."
Charlie Glenister, Director, AT Oliver & Sons Ltd, Kings Langley, Hertfordshire
"Our company has been an agricultural and grounds care machinery dealership for 150 years, and we are now developing our business hiring utility vehicles and golf buggies. We are dealers for suppliers like Club Car, JCB and Kawasaki, and this breadth means we can offer the type of vehicle that exactly meets a customer’s needs, such as two-seater buggies for golf tournaments, utility vehicles and personnel carriers for concerts and events, and ambulance units for sports events, county shows and the like.
There is huge potential for this market. Health & Safety regulations mean that equipment more often has to be transported in and around a site to avoid manual handling. You need to have a substantial fleet, because golf courses typically take a lot of machines. For example, we currently have 30 buggies on hire to Woburn Golf Club for a tournament. Business is definitely out there and we are very positive about the future."
Adrian Watts, Group Hire Manager, Buildbase
"This is the first time we have exhibited at Saltex under Hirebase’s branding, as distinct from the main Buildbase builders’ merchants operation. We have brought a lot of kit from our hire range for people to see, including a hydraulic auger and compaction plates from Fairport Construction Equipment, Bomag rollers, Atlas Copco compressors and Thwaites’ soon to be launched pedestrian dumper.
There is growing hire demand in this market, and we are looking to expand our offering. We are considering widening our range of grounds care and landscaping equipment, and we might introduce machines like compact tractors and ride-on mowers. We have already added a range of vehicle oils from Fuchs Lubricants that we can sell to customers, as well as items like anti-freeze and screen wash. Hirebase does not want to stand still, and we are always looking to add something different."
Paul Errington, MD, County Hire, Tadley, Hampshire
"Our volume of hire business is down compared with, say, 12 months ago. Overall it has steadied, but we can be very busy one day and then quiet the next. It seems to be the DIY market that has declined. However, small builders and professional landscapers are still busy, and our Kubota mini excavators and Terex dumpers are in regular demand.
We are also getting more requests for our TurfTeq pedestrian power unit, which is supplied by our sister business, GroundsCare Products.
At Saltex we have unveiled our latest attachment for the machine, namely a brushcutter deck that can be offset to left or right so that the operator can avoid overhanging shrubs. It can cut tall grass, brambles and saplings."
Mark Noble, Hire Manager, Turfleet Hire, Wokingham
"This year we have seen a 10-15% increase in spot hire of equipment, for periods ranging from one day to a week, to customers such as golf courses who have to manage their resources even more carefully. Hire is proving a more cost-effective option than the outright purchase of specialist machinery like deep turf aerators, which could cost, say, £20,000.
We have successfully established our northern operation in Lincolnshire, under Northern Hire Manager Mark Addinall, and this enables us to support national contractors working in different regions. We continually add to the fleets at both locations, with recent purchases including two more Verti-Drain aerators, Turfmech vacuums and additional John Deere tractors. We have also bought water bowsers from SCH Supplies, demand for which should increase because of climate change and drier conditions.
The prices of some machines have increased, but we have tried to absorb these without raising our hire charges. It is a careful balancing exercise calculating a rate that enables you to provide adequate service and backup, and which meets customer expectations."
Peter Whyatt, Depot Manager, Marwood Group
"We currently have 14 depots throughout the country, and I am Manager of the branch in Fareham, Hampshire. The Marwood Group specialises in non-mechanical contractors’ plant, including lifting equipment, crane accessories and forklift attachments. At Saltex we have been promoting items like site fencing, barriers and ground protection products for temporary car parks and work sites, such as Ekki mats that can be laid to form a single track to take the weight of vehicles of up to 35 tonnes.
The first six months of the year were quieter than average, but from July business has picked up dramatically. In fact early next year we will be opening a depot in East Kilbride, which will be our first in Scotland."
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