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Pallet network members eye moves to beat recession
Page 8
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By Joanna Bourke THE RATE THAT pallet network members are switching from one network to another has accelerated as hauliers look for ways to maintain volumes and margins to beat the recession.
The Pallet Network (TPN) managing director, Adam Leonard, says the firm has picked up three members from rival networks since January, but has not lost any, "We have definitely had more interest from potential members from other pallet groups over the past seven months. An interest heightened by customers wishing to avoid the economic downturn," he continues.
United Pallet Network (UPN) director Dave Brown comments: "There's a lot of pressure on some of the larger networks with new hubs. Some of their members have been talking to us. This suggests they may be nervous about maintaining high volumes." However, since the beginning of the year, four businesses have made the switch to Palletforce and Palletline — networks that have invested in larger hubs.
Spalding, Lincolnshire-based GarnTransport and Linlehampton, West Sussex-based Bleach of Lavant departed Fortec and chose to join Palletline and Palletforce respectively in February.
Leach Distribution, which is based in Lancashire and is the three-times winner of Pall-Ex's 'Depot of the Year left Pall-Ex after ii years to join Palletline, and EVTS Overnight Deliveries left Pall-Ex to join Palletforce.
Vernon Walker,finance manager at Bleach of Lavant, says the decision to switch was based on Palletforce providing an average of 80 pallets per day compared to a maximum of 50 that was being offered by Fortec.