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matters by John Darker, AMBIM
Removers in America
Highlights from a study tour by a team of British removers
IN A WORLD of package touring, study tours by professional groups are likely to increase. I recently expressed surprise on hearing of a meeting in Ireland of an American dockers' trade union, and was told that it was done for cheapness! That was not the reason for a fortnight's study tour last autumn undertaken by a group of British removers, though the total cost to participants was substantially lowered by the RTITB's payment of grant at management rates for 10 of the 14 days, plus a substantial grant towards the travel costs.
The report prepared by tour participants for the Institute for the Furniture Removing and Warehouse Industry is a model of thoroughness which could well serve as a pattern for other trade groups. Careful pretour preparation by a sub-committee ensured that the tour was limited to the cities of New York, Washington, Philadelphia and Toronto, all relatively close together. Four areas of study — finance, marketing, personnel and operations — were chosen and participants were split into specialist groups before the tour commenced. Each group elected its own leader and drew up group objectives and all members were delegated a particular responsibility within their area of study.
Prior arrangements were made with the host companies in the cities visited for the specialist group objectives to be sent in advance of the tour, so that each company involved could prepare answers to likely questions, with resultant time saving to all concerned.
The tour coincided with a convention of the Canadian Association of Movers at Toronto and members profited from discussions with a cross-section of removers during the convention. An International flavour was given to the study tour by the presence of delegates from Norway, Germany and India — an added bonus to those concerned on both sides of the Atlantic.
It is impossible to do more than a brief sketch of a 59-page report in a short article but highlights and the main conclusions in each section can be given.
Tariff rates The finance group set out to investigate accounting methods and controls and the use made of management information. They found that accounting and information systems were influenced by four factors: a tariff structure, Van Lines, owner-drivers, and an incentive based marketing approach.
For tariff rates to be increased a submission to the Interstate Commerce Commission requires payrolls to be closely analysed over the various activities. Additionally, since local moves and packing for long-distance moves are charged to customers according to actual time taken — regardless of estimate -the correct compilation of time records and job sheets is vital. The most commonly used control factor is the percentage payroll costs per department to revenue.
The bulk of removals in North America are paid for by corporate bodies and Government departments. Aside from the marketing aspects, management were concerned to monitor the effectiveness of salesmen. The number and value of inquiries received, orders placed and the conversion ratio was required information.
Revenue was analysed under the headings of collection charges, packing materials, hauling, unpacking, delivery, insurance and miscellaneous. Charges to customers have to be calculated in this form and summaries of this information are useful to management for control purposes, and indispensable to Van Line members and/or ownerdrivers whereby each party to a longdistance removal takes a share of revenue relative to work done.
level of charges seemed high, cube estimation being relatively unimportant since the customer finally paid for weight transported. Despite high rates for removals, vis-a-vis UK firms, warehouse rates were comparatively low. Despite the popularity of Van Lines, no delivery date or time iE given to customers — an almost inconceivable practice seen through British eyes.
On average, in the USA families mov( once every five years -considerably mon often than in the UK. In the Hamiltor and Burlington area, in Canada, the averag( family uproots itself every 2+ years!
The group noted the reliance of man3 North American removers on Van Line: facilities and publications, even down to du design of letterheadings, cards and vehich livery. The companies visited, being large than average, had developed a mon individual marketing approach designed tc tap the specific segments and diversill cations they felt they could exploit. Sucl segments as corporate account moving, loca moving, short haul, inter-state moving, lom haul inter-state moving (using Van Lin, marketing aids), storage (mainly palletized) Government Account moving, offic moving, overseas packing and moving office packing and storage and moving, wer noted.
Computer storage Some interesting diversifications in tit storage field related to office records storagi with multi-storey central city sites am coupled collection, destruction and retrieva services. Computer storage and distributioi utilized atmospherically controlled special ized premises using air-ride, tail-lift, deliver equipment. There were specialist service for the collection and storage of rugs furs, carpets, and valuables, with ancillar■ cleaning and fumigation services.
In the packing and removals field on firm had diversified from packing into mini assembly line for truck cabs and chassi in a separate location.
A main conclusion was that despite — r perhaps because of — aggressive selling :chniques, sales resistance had built up -trough over-selling of equipment and iaterials. The effect was to boost self-drive icilities. The very large marketing effort ras negated by the removal of the price ictor in competition through tariffication. Advertising — around 3 per cent of lovers' income — was spent largely on V (11.4 per cent), radio (44.1 per cent). rid Yellow Pages (21.0 per cent).
:losed shop Labour relations provided extraordinary mtrasts. Few removing firms were fully lionized on the operating side and white 'liar unionism was almost non-existent. 'here there was a closed shop for driving aff, as in New York, the Teamsters' union who negotiated with the local Movers' ssociation — were powerful. The last ree-year agreement yielded a 45 per cent crease. Here, the rate for "helpers", the west grade, was $ 180.40 a week, packers tring $ 6 a week more.
Social security arrangements as between ate and employers' contributions varied eatly. In New York, employers had to pay e Teamsters $ 1 per man for every basic our worked as a contribution to employees' nefits. Elsewhere the employers' ,ntribution — and workers' benefits — )uld be much lower.
Acceptance by unions of casual labour is noted. In Canada, one remover has permanent staff of 23 which swells to 0 in peak season.
Salesmen in Canada (known as moving unsellors) were paid between $ 10,00013,000 a year, with a car and liberal penses, and an additional bonus of 4 to per cent on sales. The salesmen were given kets to sports events as an inducement to stomers.
Paper qualifications for secretarial staff .peared to be non-existent in the US. A pist, apparently, cannot get a proficiency rtificate, though training is available at hoots and colleges. Generally, the group Dught the UK's selection and training ilities for middle managers and estimators be in advance of anything seen across !, Atlantic.
Inge of equipment The operating group were impressed by ; readiness of American removers to lovate, often in fields outside the iustry, and generally to their financial vantage. The range of equipment used special removals was surprising, incluig walkie-talkie sets and hundreds of Leeled dollies to cut out manual carrying. ontrol procedures, such as electronic )ewriters producing manifest tapes and led peg-boards continuously up-dated to )w the progress of jobs, were seen.
There was a vast over-provision of wareusing space — palletized removals are lost universal — but claims experience s high by British standards. The lustry's public image is poor probably ;ause of over-selling, very high prices and use of casual labour.