THE TYKES STRIKE BACK
Page 59
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Former steel men Ben Sy!ward, Alan Stinson and Brian Beckett have a vision: they want to run steel into Europe.
• The haulage industry claims more business victims each year than any other industry. Every year a staggering 25% of UK hauliers go to the wall — but that doesn't deter every would-be new haulier.
Ben Aylward is a Rotherham-based exBritish Steel worker, shop steward and card-carrying Labour Party member. Faced with redundancy last year, he decided to join forces with another exBritish Steel man, Alan Stinson, and local financial brain Brian Beckett. Together they remortgaged their homes, borrowed as much as the bank would lend, threw all their redundancy money, guts and will to win at a new project — a haulage firm.
Risky? Only if you allow it to be, says Aylward: "We're all aware of the failure rate in this business but then, when I take a closer look at some hauliers, I'm convinced that too many of them have no idea how to operate.
"You cannot successfully run a haulage firm unless you adopt the practices of your successful competitors. You must have good clean trucks, a good image and above all, a thorough understanding and appreciation of customer relations."
COMMITMENT
Aylward and his partners set up ABS Distribution (Aylward, Beckett, Stinson) six months ago, bought nine new Seddon Atkinson 401 6x2s, designed a smart livery, recruited drivers from Rotherham United Engineering Steel's transport section and went into business.
Stinson had been operating independently for seven years before the inception of ABS, so the new vehicles joined Stinson's brace of trucks.
ABS now has a fleet of 15 vehicles including nine 6x2 401s for 38-tonne work, three Volvo FL1Os for 32-tonne work, one 6x4 Leyland Bison rigid, a Leyland Terrier and a Dodge for 7.5tonne work. The 32 company trailers comprise an assortment of York, M&G and Crane Fruehauf tandem-axle 12.2m flatbeds and curtainsiders.
ABS could be viewed as a classic example of entrepreneurial enterprise in Margaret Thatcher's Britain, but Aylward (whose past includes being arrested on a picket line) sees it in a different light: "It is in any union's interests to co-operate with employers to ensure profitability. Unions are not in the business of destruction. Rotherham-based United Engineering Steel was quite rightly following British Steel's policy of getting into shape — that meant one of the things to go at Rotherham was the transport section.
"United Engineering put out the tender so Brian Beckett, Alan Stinson and myself decided to make a bid for it. We drew up the most comprehensive, professional and attractive package we could muster and got the contract. It worked out very well: on the Friday the drivers were working for United — on Monday they were in ABS uniforms."
Some might argue that United's choice of ABS was politically motivated. Here was Ben Aylward, an ex-employee with a history of trade union activism and a powerful figure in labour relations, prepared to save United's face by hiring the workforce whose jobs were about to be slated. Aylward's reply to these insinuations: "United was never dissatisfied with its transport staff but just because I had worked for the firm for years did not give me an inalienable right to anything United might want to sell off. My position with the company never meant that I could provide it with a haulage package superior to any of my competitors. ABS got the contract because we were prepared to offer more than the competition."
That "little bit more" offered by ABS dearly demonstrates ABS's committrnent to customer relations. Two ABS Seddons, for example, are liveried in United colours including the UES logo.
LOYALTY
Another "extra" was the provision of the ABS image through driver's uniforms. "It may seem a small thing but you'd be amazed at how effective this is."
Aylward emphasises the importance of having total loyalty from his drivers: "Because our firm is in its infancy, all the drivers know how important they are to its success. They take care of the trucks, are courteous with clients and are very motivated. They do not need to be told what to do, even if it's not their job to know. I could not wish for more from them," he says.
"The survival of any company relies heavily on the relationship between the directors and the individuals," says Beckett. So how does a former shop steward like Aylward come to terms with his new owner/manager position, bearing in mind that what once were his union members are now his workforce? Without a hint of embarrassment, Aylward says: "The workforce know now that it's all a different ball game. The people we've got know that we are people they can approach. We want to keep the ship happy and anyway we are all members of the URTU. Everyone here is perfectly aware that the first rule is profitability."
Does the quest for profit conflict with Aylward's beliefs as a life-long union activist? "The only time I ever worked for a non-profit out-fit was when I spent nine years with Her Majesty's forces. No, without profit we are nothing."
Beckett adds: "I think there is an increasing awareness throughout the industry that private companies not only have to make a profit but need enough to reinvest in plant and equipment."
Reinvestment doesn't stop at plant and equipment. With the future in mind, Aylward wants to bring in more young blood: "We sponsored one lad through polytechnic on a graphics course who designed our livery. We now want to take on one transport graduate."
What are the prospects for a firm like ABS Distribution? As the European nations stumble and trip towards harmonisation in 1992, is there room for a haulier with no European links? Aylward has no doubts about the future: "I am mindful of the fact that given Channel Tunnel costings, it might be a good idea for a homebased haulier to look at the distribution of steel in Europe. We could easily run steel into Paris — the problem lies in the return loads. We must attack in the same way as the Continentals will attack us. In a few years I can see small fleets throughout the Continent servicing each other and co-operating to each others' benefit."
He is convinced that the Chunnel will be a boon to British hauliers. Customs delays should be a thing of the past by 1992, and the tunnel will be in a position to offer faster crossing than the ferries — journey times will be drastically reduced, he maintains.
Looking forward to harmonisation, Beckett believes in proving to United how efficient ABS is. "At present, 60% of Rotherham United Engineering Steel products goes to the home market, the rest of it is exported. In fact, we shouldn't really talk about exporting to Europe — the idea is that it will be an extended home market. We are in the position of taking on all United's transport requirements. Most of United's Europe-bound steel doesn't actually go to clients. It goes to United agents based abroad — therein lies a captive European market."
With the final word, Aylward warns: "Any haulier with his brain in neutral (and there's plenty of them) is going to get wiped out. The future will be tough — but the rewards are potentially vast."
0 by Joris Minne