The instinct for survival
Page 31
If you've noticed an error in this article please click here to report it so we can fix it.
I SPOKE TO a representative selection of transport men in the East to try and find out both their thoughts for the future and how they are coping at present.
Glyn Davies is managing director of Russell Davies Ltd, Nicholas Road, The Dock, Felixstowe, a company that has expanded from three vehicles when it started six and a half years ago to 101 today. Its vehicles are mainly carrying out domestic container haulage for quite large shipping lines. Fortunately, or wisely, about a year ago its management foresaw the present economic situation and changed policy from growth to replacing vehicles only.
The company was revenueoriented and not too concerned about costs till this year, Glyn explained, and is surviving by way of reduced costs. It has always been very much accounts-minded and so has information on costing and management control assistance in detail ready at hand to perhaps a greater extent than most competitors.
Russell Davies has two other depots — at Ipswich and Manchester. Two vehicles are used on a regular German contract. Customs procedures present no problems, being much more straightforward than they were before the United Kingdom joined the EEC, "I would say first that we are finding it difficult to keep our vehicles fully utilised, but are just about managing to do so," he said. "We used to subcontract as much as 40 per cent of our work and our sub-contract work has taken the knock. Many of them are owner-drivers and they are feeling the pinch, although the shipping lines are sympathetic to the small haulier in these times. The haulage industry breeds survivors."
Joseph Skinner is managing director of Green & Skinner (Haulage) Ltd, Beaconsfield Road, Ipswich, a general haulier concentrating on export/import work via the docks. The fleet, mainly Dodge with some Magirus Deutz, has been reduced to 18 by two vehicles.
"We are trying to make better use of our smaller fleet"' he said, "but are considering making further reductions if the present trend continues. We bought a new Dodge this year but won't be purchasing another before 1981. Ipswich, Felixstowe and Harwich docks are very slack these days so at least the turn-round is much quicker,
Ted Smith is executive director of C. W. Bridge (Felixstowe) Ltd, Anzani House, Trinity Avenue, Felixstowe, which has a very small fleet but sub-contracts work — this aspect has gone down dramatically, he said. The company has the same directors as another at Huntingdon with 20 vehicles, and the two firms liaise.
Ted has been in transport nearly 60 years, and believes that though it is a little early to say what is going to happen, the present situation has classic symptoms shown at the start of the slump from 1932 to 1936/ 7. However, the Thirties in transport were preceded by the boom of 1921-1929, the slump then being triggered by a financial crash while this one, he said, was started by the huge rise in the price of oil which started a loss of confidence.
"This time there is not much fat there,he said. "Industry is shedding its stocks and there could be a slight upsurge when they start restocking if they continue, but on a much lower scale for some time to come.
"Hauliers are therefore feeling the pinch to a consiserable degree, and rates are at an all-time low through intensive competition. There have not been the lay-offs in the industry I thought would have been necessary. We must pull our belts in and examine every ounce of costs.
-I hope staffs will realise annual increases in wages are a thing of the past. Drivers have got the message very clear, but the unions are out of touch. The drivers are wiser than their leaders. However, transport is flexible and will survive in the main.'