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THE NS AND OUT! MAINTENANCI

Handling your own maintenance has much to commend it — but so does contracting out.

Steve Banner examines the pros and cons.

Operators tired of scouring the land for technicians, wrestling with a mountain of health and safety regulations, and worrying about how to dispose of used engine oil and other waste might be forgiven for thinking about closing their workshops.After all every truck manufacturer runs a network of dealerships that are more than happy to look after vehicles under contract, and every dealer worth his salt is eager to promote the multitudinous virtues of repair and maintenance agreements.

So why do so many operators remain unconvinced about taking this route?

They argue that contracting out their maintenance means that in effect they're entrusting the care of their precious 0-licence to a third party.After all, as CM's Legal News pages show. the Traffic Commissioners are distinctly unimpressed by claims of slipshod maintenance contractors when considering cases of defective brakes or dodgy steering.

Operators also realise that if they shut the workshop and get a dealer to do the work, it's going to be extremely difficult to revert to in-house maintenance if they subsequently decide subcontracting doesn't suit them. They'll have made their fitters redundant. and might have demolished or sold the workshop building too.

The desire to keep direct control of servicing standards is one reason why Bristol-based haulier George Taylor operates its own workshop. according to director Mark Taylor. "If one of your own litters changes the oil in an engine then you know the job has been done. and you can he certain about which oil has been used," he points out.

"It's the same with tyres.Swap them yourself and you can be sure about the quality of tyre that's been fitted."

Taylor adds that sending vehicles to a dealership to be maintained is time-consuming, for the obvious reason that they've got to be driven there and back, and while that's happening, they're not earning. He reports: "Most of the truck dealers in our area are down at Avonmouth these days.

If you've got your own workshop, however. then you can, for example, carry out a statutory inspection the minute the truck returns to your

depot without having to arrange for it to go elsewhere." he adds.

If you've got your own fitters it's much easier to deal with the minor problems that regularly plague vchicles."I'm talking about broken rear lights and damaged side guards. for instance." saysTaylor."You can get a litter to replace a broken fuel tank strap on a Saturday morning,and it'll only take ten minutes. It's a different story if you've got to dispatch the truck to someone else's premises."

Although it puts some work out to franchised dealers, the ability to fix defects quickly is one of the main reasons why East Yorkshire-based GordonsTransport has retained its own workshop. according to managing director Jonathan Atkinson.

The work keeps flowing

He's not worried about the %■.orkshops having too little to do during the day when the wagons are out earning their keep: "The number of trailers we operate means that there's a steady flow of work."

In fact trailer maintenance is a major reason for retaining in-house facilities at S Walker Transport of Beoley.Worcs.

Its fleet of 3.5 trucks carries bulk waste, particularly waste paper and cardboard, in walking-floor trailers. Because of their specialised nature Steve Walker prefers to have them looked after at his own premises by technicians who know about them.

But he does point to one drawback of running his own workshop:the need for regular investment in workshop equipment (especially diagnostics) to keep up with the growing sophistication of trucks and trailers. And even fully trained technicians must have regular access to up-to-date technical data from the manufacturers.

It was these pressures that prompted Massey Wilcox to subcontract responsibility for the staffing and running of its main workshop at Chilcompton. 13 miles south of Bath. to Mercedes-Benz dealership Lancaster "Ii-uck and Van.This arrangement was inherited by Lancaster's succes.sor.Commercial Motors. and it's been in place ever since.

"We were getting to the stage where you needed a computer to mend trucks rather than a hammer and chisel, and skilled technicians were as rare as hens' tee th," says managing director Robert Wilcox. "We also wanted to dedicate all our time to developing the transport side of our businessAfter all, we're hauliers, not garage men."

Commercial Motors looks after Massey Wilcox's fleet under a fixed-price contract.This ability to predict repair and maintenance expenditure definitely appeals to Wilcox. So does the fact that he's rid himself of all the health and safety issues associated with running a workshop.

He charges Commercial Motors a nominal rent for using the workshop, and the contract leaves the dealership free to take on thirdparty work.The fact that it's on-site means that ally problems with Massey Wilcox's 80 trucks can he dealt with promptly.and, in turn.Wilcox and his colleagues can keep a close eye on maintenance standards.

-We carry out periodic spot checks on individual trucks and trailers to see what's been done," he reports.

One potential snag with running an in-house servicing operation is that there's often less pressure on technicians than there is in a dealer's workshop.Wileox remarks:"As a consequence they may he tempted to make jobs last all day."And that's not a cost-effective approach for any operator.

With Commercial Motors in charge. a steady stream of third-party work coming through the gates and the need to keep Massey Wilcox's vehicles in tip-top condition, this workshop is never idle, he says.

Tied down to one marque One drawback of putting a franchised dealer in charge of your workshop is that you're pretty much tied to the marque it represents, Its training.equipment, and parts stock will be geared to that marque. and this is likely to create problems for a mixed fleet. But Wilcox remarks:Fortunately I'm quite happy being tied to Mercedes."

Many operators assume that using a franchised dealer to maintain their trucks will cost them more money.This is understandable given the findings of our investigation into workshop prices, which revealed that the cost of having a truck serviced at a dealership was soaring (CM 19 May 2005).

But comparing costs needs care, says Liam Ilbury. Mercedes-Benz's commercial vehicle aftersales general manager-II-ley don't always take into account the cost of heating, lighting, and local authority rates, not to

mention the cost of waste disposal and management and accounts department time."

And remember that the patch of ground the workshop currently occupies might be put to more profitable use.

Another perceived problem is that the hourly rate charged by an in-house workshop might well be lower than the charge levied by a third-party dealer.To offset this remember that, other things being equal, the dealership should he able to complete jobs in less time.

Practice makes... faster Ilbury says, with some logic:"If you're doing the same jobs on the same type of vehicle every day.and you've got instant access to all the necessary tools and technical information, then you're bound to be faster."

If you subcontract servicing to a dealer you might lind it more difficult to keep track of service and inspection records —which is just the sort of paperwork that VOSA is likely to require. However, several dealers and hauliers are involved in experimental schemes in which records are kept and transferred electronically. subject toVOSA approval.

llbury admits that while truck dealers are more than happy to maintain vehicles. they're not always too keen on servicing trailers, "They take up a lot of space," he points out.

However, many dealers recognise that trailer maintenance can be profitable work that will keep the workshop occupied at quieter times of the day,says Scania aftersales director James Armstrong. "Some of our dealers now have workshops that can accommodate double-deck trailers." he reports

When it comes to shuttling trucks between the haulier's yard and the dealership, it's worth noting that dealers frequently offer a collection and delivery service, he points out: "They may also be able to provide a 'snagging van' — a van with the commonly needed parts and equipment, plus a technician, that can be on hand at an operator's premises when trucks depart first thing in the morning to deal with any minor unforeseen problems:

Then there's the fact that any repair carried out by a dealer will he covered by a guarantee. and that any OEM parts used will be covered by the guarantee too.

One factor that's definitely propelled operators towards using dealers for their aftersales care is the practice of selling new trucks with repair and maintenance packages covering, say, the iirsl two years of operation.

A manufacturer-hacked R&M plan might allow you to have the work carried out at any of its dealerships nationwide a useful benefit if you need to switch trucks between depots.

On the other hand, operators might be able to reach an agreement with their suppliers to do the work at their own premises and reclaim the cost of the parts and labour.

It should also he remembered that R&M deals might not cover glass, accide nt damage, damage caused by driver abuse, or tyres (although tyres might well be covered by a separate agreement with a tyre supplier).

An operator who has a service department with spare capacity might choose to generate extra income by maintaining other operators' vehicles. Steve Walker does this in a small way and says:" It's an activity we'd like to develop." So would Gordons Transport and South Luffenham, Rutland-based powder tanker operator WH Higgins and Sons has developed this area into a major profit centre.

Useful extra turnover

"I reckon about 85% of what we handle is third-party work, and the workshop accounts for around 28% of our total turnover." says Barry Higgins. who runs the six-truck company alongside his brother Mick.

HGVs account for some of their third-party work hut most of it comes from Ford panel vans and 7.5-tonners. Many car workshops have neither the desire nor in many cases the room to work on them, says Higgins. while truck workshops tend to regard vans as big cars, and aren't always that interested either.

As a consequence-WH Higgins has carved out a useful niche for itself: "We've got three lifts that will take Transits, and we can carry out Class 4. Class 5.and Class 7 MoT tests," he reports ."We've got a database of 1,800 customers we'll happily work on cars as well as commercials and we can afford to charge less than half the labour rate that's charged in Peterborough.a few miles down the road."

The added volume of work makes it easier for the firm to justify investing in technology and training.

Changes in the Block Exemption rules that govern the operation of franchised networks mean anyone with suitable premises, equipment, and staff technicians can apply to a vehicle manufacturer to become an authorised repairer. If they meet all the criteria the manufacturer cannot refuse, even if it ha existing dealership just up the road.

However,11hury says operators with s( departments seem to have little appetite authorised repairer status. "Perhaps it's because so many of them no longer see running a workshop as a core area of the business," he remarks.

And Armstrong comments:"It may al because the investment required can be high." That's not an artificially created IN he adds:simply a reflection of the cost of establishing quality truck servicing facilii Operators might be more interested it fact that the Block Exemption regulatioi oblige manufacturers to provide operatc with technician training and diagnostic packages at the same price they charge ii own dealers.

In Higgins' experience, however, it car difficult for an independent to persuade. manufacturers to part with certain types diagnostic tackle and data

At least one Traffic Commissioner has suggested that maintenance standards at franchised dealerships need to improve,. that an official accreditation scheme of some kind might be necessary. Armstrong disagrees:"Manufacturers and their networks have done a lot to improve standards.While wouldn't be scared of such a scheme, in my view the last thing our industry needs is more legislation."