iversificatkm, according to some business manuals, is the key to
Page 35
If you've noticed an error in this article please click here to report it so we can fix it.
success. The company which ties itself too closely to one source of employment is doomed to collapse as soon as the economic climate turns gloomy. It's a philosophy which has no doubt saved some hauliers from financial ruin, but it cuts no ice in Tayport. Fife, where for more than 30 years the fortunes of a family-run transport business have been inextricably linked to those of a neighbour which specialises in industrial textiles.
Since the mid-1960s R&D Bayne has been generating most of its turnover by moving textile goods for specialist manufacturer Scott & Fyfe. The relationship was so strong that 10 years ago, when the haulier—Ike many others in the industry—was struggling to survive the icy depths of recession, its business ally stepped in to take it over and guarantee It a healthy Mere.
In a business where competition is notoriously cutthroat, the stability and commitment shown by these two companies is refreshing.
"Scott and Fyfe was a family-run business and so was ours, and the two families were fairly close," says Bobby Bayne, whose grandfather started the company back in 1921 in time-honoured tradition with a horse and cart. "We were basically their main hauler for years. When they bought us times were very bad.
"The whole industry was going through a hard time and my father, who owned the company, said it was the best offer we would over get. We were definitely under threat when Scott & Fyfe took us over," he admits. "At the time we were under great pressure, and It was getting more and more difficult. Scott & Fyfe were competing with some major multinational companies. They needed their own haulage operation and that was a real soling point for them. We will deliver when we say we will deliver."
This commitment has been building up over the years, ever since the fledgling family firm of R&D Baynes provided a general haulage service between Tayport and Dundee on the other side of the River Tay. Until 1966, when the Tay Bridge was built, this meant relying on a local ferry service. Cargoes ranged from flour for the local bakers to beer for the local pubs.
"It would be anything that people could not carry in their arms," says Bobby Bayne, who now serves as transport manager for the haulage arm of Scott & Fyfe. "Tayport was a small village so the company even used to end up delivering messages to people."
For many years the firm's horizons stretched only as far as Dundee or Forfar. But since acquisition by Its business partner and neighbour it has evolved into a sizeable transport operation, serving most of England as wall as Spain, Portugal and 'IN\ the Benelux countries.
Although the textile industry is often seen as vulnerable to a recession, the specialised area of Industrial textiles seems relatively sheltered. Scott & Fyfe's niche in the market is high-quality underlay for carpets and one-tonne fertiliser bags for the agricultural imlustry.
The manufacturing arm turns over around 124m a year and employs several hundred people. In recent years some of its main rivals have fallen by the wayside, leaving the doer open for it to exploit new markets.
As a result, the haulage side of the badness has been booming and the fleet has doubled in size to eight vehicles: kw Nacos, two and two Dais; al 41-tonners "In the past three years we've made a good few purchases," says Bayne. "We bought the two Renaults in 1995 and that was the start of our expansion. The factory was starting to put stuff out on a bigger scale."
Getting the go-ahead to expand the fleet has rarely been a problem, says Bayne, as long as he can put forward a sensible business argument to support it But he admits that the purchase of the two Renaults— both 385 Turboliners—was a probably a mistake: "For the first couple of years they were fine, but the mechanical problems we have had in the past year have really put us off."
The core business remains the movement of the factory's textile products, but expansion has allowed the haulage side to generate turnover from subcontracting: this now accounts for more than a third of its annual turnover of some £950,000.
Bayne says the beauty of this side of the business Is that the haulage arm has no need to indulge in costly discounting—it can afford to say no to jobs unless the price is right This climate of stability means staff tend to stick around. Business turnover may be high; workforce turnover is not. Only one driver has left in recent years, and that was simply to transfer into the factory so he could spend more time with his young family.
Bobby Bayne himself, now 30, has been with the company for 13 years. His brother David, 36, is one of the drivers; he has also spent the bulk of his working life with the family business.
The drivers' role has changed considerably over the years, says Bobby Bayne—their responsibility goes well beyond delivering the goods: "They have to be much more aware of the technology of their vehicles but more and more they are ambassadors for their company," he points out. "We have uniformed drivers who turn up and have to be pleasant to our customers. You have got to get the most out of your vehicles and their drivers every day."
Efficient use of trucks is now a prerequisite for any haulier who wants to stay in business in the face of rising fuel costs. As Bayne knows all too well, fuel has overtaken wages as the biggest drain on income. "Around 24% of our income is going to fuel and it is likely to get worse," he reports. "If our drivers are going to Europe they go out of the UK empty and fill up abroad. And when they come back they fM up again before crossing. We have three or four vehicles a week going over so that's saving us quite a bit. But they have still got to buy expensive fuel in the UN."
With the Government hellbent on continuing to force up diesel duty year by year Scott & Fyfe expects no let-up in spiraling fuel bills. But with a busy factory to service, it can at least look forward to generating more than enough income to cover them—and that's something many general hauliers have good reason to envy.
by Pat Hagan