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MOVING INTO NEW FIELDS

14th September 1989
Page 131
Page 131, 14th September 1989 — MOVING INTO NEW FIELDS
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Which of the following most accurately describes the problem?

IN Some removals companies are suffering their worst year on record. Because of the continuing decline in the housing market, many have only survived by diversifying into office moving, storage and even general haulage.

Because of the implications of product liability and the importance of maintaining a good image, many operators feel it is essential that bodywork should be supplied by a BS5750/ISO 9002-certified bodybuilder. Most use one of three major suppliers.

The British Association of Removers estimates that nearly 1.000 small operators have gone bust with the loss of up to 5,000 jobs, but we managed to find 125 survivors for our survey.

Over 82% of them run fleets of up to 10 trucks: 51% have less than five, but several have over 100.

When asked about the likely effect on their business of the lowering of EC internal frontiers in 1992 there was a three-way split of opinions: "more business opportunities"; good for operational efficiencies" — and an ostrich-like "no change". There was much more agreement when it came to weight restrictions in the London area.

It seems that most removal companies simply ignore them, and report that the authorities are most accommodating about it too.

Our survey suggests that the optimum size of pantechnicon is 16 tonnes GVW, as used by most removers, but quite a few start at the 3.5 tonnes limit. Few venture over 17 tonnes.

Those operating within a 160km radius of base represent only 11.1% of our sample, while 41.3% of those quizzed cover the whole of Britain. Another 31.7% cover the whole of Europe, and 15.9% go the whole hog, invariably using freight-forwarding agents and shippers to move the goods.

As our figures show, the domestic market has suffered a beating over the past year. The international market has grown, albeit slowly.

For some of the smaller companies this has been the worst 12 months on record, triggered mainly by the sharp downturn in the fortunes of the property market and by high interest rates. Corporate and factory removals work is all that has saved some long-established firms from going to the wall.

Many respondents spoke of the undercapitalised 'cowboys' they feel are undermining the B AR's strict code of practice and exacerbating an already bad domestic situation. questioned, with the more negative replies coming from the smaller outfits operating in restricted areas. Many of them see little danger locally, and are adopting a wait-and-see stance.

Quite a number are sceptical about any reduction in red tape, indeed one Guildford operator believes it will be just as messy. He currently has to fill out 70 documents for a delivery from London to Italy, and wonders if the bureaucrats will manage to do away with the queues waiting to enter Spain.

It is this minefield of paperwork that stops some companies from going abroad, and so the confusion remains.

Some 30% felt that increased competition would help to sharpen up their efficiency. Some of them believe that the Dutch will be particularly tough competitors and one UK firm has already lost a removal in the City to a Belgium company. Only 29% see the Single European Market as an opportunity rather than a threat.

Evidently the removals industry has lost most of its bread-and-butter work (up to 80% in some cases) and is leaning heavily on anything else it can get its collective hands on. Shop and office removals; containerisation work, factory relocation with plant shifting sub-contracted out to heavy hauliers; kitchen and furniture distribution — even general haulage. You name it, removals operators are doing it. Many are convinced that they would have gone downhill fast had they stuck to house removals.

Removals is essentially a personalised service, and so is the business of buying new pantechnicons.

Some 65% of those interviewed take their requirements to a bodybuilder and plan out a specific design. In many cases this relationship is a long-standing one that foreign manufacturers will find hard to overcome.

Nearly 10% buy locally, but 25% say they will shop far afield if necessary. Several say they would take a second hand chassis but fit a new body as a matter of course.