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/LI TRANSPORT
Page 47
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11[.eith Spencer is a third-generation haulier but the company he now runs is not the old family firm. In fact, until nine months ago, Spencer had no real involvement with J&J Transport. ipencer's father was a major haulage conctor, running 114 vehicles and numbering inness and Heinz among his blue-chip cusner portfolio. That was in the seventies. The n went into liquidation in the early eighties en Keith Spencer was still a boy, brought Ain by debilitating trade union activity and shed off by recession. But that has not preited him entering the industry.
[his time last year, Spencer was a director a small Merseyside haulier, King Trucking, I was negotiating a management buyout im the owner. The deal went sour, the Iner wound up the company and Spencer Ind himself out of a job.
that was when he and Paul Coulthurst, who rned a struggling haulage firm nearby, got king. Coulthurst's firm, J&J Transport, eded a boost; Spencer had a business plan d a list of loyal customers. "We put the two ;ether and went into partnership on a 50-50 sis," says Spencer.
This was in May. J&J Transport did 230,000 irth of business that month, but by the ginning of this year, monthly turnover had en to £80,000. Spencer is now keen to prone his new venture and is confident of sucss. But he admits that his business skills ye been helped along with considerable od fortune—some of it at others' expense. "There have been a lot of business failures in the local area. The haulage industry has suffered a lot," he says. The failure of other hauliers has allowed J&J Transport to pick up some keenly priced second-hand vehicles. The firm has six of its Own vehicles, four of which are Mercedes Actros tractors owned previously by Twivells, a local firm that folded last year. Spencer took over the fleet from the liquidator, re-financing the trucks on a three-year lease at about 30% below the market rate.
Six-wheel rigid
Spencer also picked up a P-reg Leyland Daf six-wheel rigid from Smith Brothers of Widnes. This was originally a tandem-axle 32-tonner; the type of truck that Spencer says you can pick up for just a couple of thousand pounds. "Nobody wants them any more," he says. Smith Brothers stretched the vehicle, added a lift axle to the back and fitted a 28ft body, making it a handy curtainsider.
Spencer admits that he is lucky to have his loyal customer base. "We operate in a niche market," he says. "Our main customers are in the plastics and chemicals industries and they're all located in our area. These customers demand a high-quality, 24-hour next BASED Speake, Liverpool.
FOUNDED 1984, Huyton.
CONTACT Keith Spencer, partner.
SPECIALITY Plastics and chemicals.
day service and trust Spencer to deliver it, rewarding him with good rates. This has helped him deal with the massive cost hikes that have done for so many other hauliers.
J&J Transport is not immune from these problems, of course. "Until last June, it was mainly fuel prices but now I think wage rises are a major problem," says Spencer. The changes that required drivers to pass the Class 2 test before going on to the Class 1 has restricted the availability of Class 1 drivers.
Spencer says this has pushed up the basic wage from about 24-4.50 an hour to £5.50 or even V an hour in the past year. He approves of better wages for good drivers; he just wishes his customers shared his views. "It's a high-stress job nowadays and drivers definitely deserve a better wage," he says. But just try putting that across in a market that has 3% inflation. Customers just don't want to know."