Removers Think of Their Future
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MUCH thought is being given by the more progressive members of the furniture-removals industry to its future. This was evident from contributions to the autumnal conference of the National Association of Furniture Warehousemen and Removers held in London last week. Sentiment underlying several papers was that removers must not lag behind other industries in adopting modern techniques to improve service.
50 Per Cent. Inadequate
"wE need to re-address ourselves to the whole business of our costs and rates in the light of the times We are living in. I am suggesting that 50 per cent. over net cost is wholly inadequate to meet the cost of modernization and capital re-equipment."
This was stated by Mr. A. R. Walker, secretary, West Midlands area. More emphasis must be given, he claimed, to time and motion study.
When tenders were being submitted, it needed only one irresponsible operator to throw the others out of joint. Whilst the customer who accepted •the lowest figure seldom, if ever, lost, the trade always did—individually and in the aggregate.
He contended that even if removers were to stick to sound estimating and quoting, their position would still be far from satisfactory. The question of rates was still dogged by out-of-date thinking. Though the trade might avoid the harshest impact of competition, it could still fail to share in the improved prosperity.
Little Chance
Relative to the changing value of the pound sterling, removers would be surprised howlittle was the difference in the level of their prices in 1951 as compared with today. There .had been talk of doubling our standard of living in the next 25 years, but Mr. Walker saw little chance of removers doubling their earning capacity during the same period.
The removals trade was a one-way-risk business, and few operators knew if they would be engaged a fortnight ahead. It was normally the nature of risky businesses that the rewards should be higher than in bread-and-butter trades, but this did not apply to removers.
Moreover, the periodicity of removals necessitated that companies maintain their organizations for customers who seldom needed their services, perhaps once in 10 years. The trade should take this into account when fixing rates.
Trades which provided a service were chiefly concerned with labour as their principal outlay. What could not be productively used on any given day was permanently lost. Products could not be 24
sold later at half price, for example. There was also the psychological disadvantage that removers were mainly concerned with a wasting asset, used furniture, which reflected on the amoont the public considered reasonable to pay.
There was also a need to improve the status of the trade on a professional level. Payment for services by their associates, estate agents and solicitors, was seldom questioned, although their scales of charges were what they themselves considered proper. Removers must work towards obtaining a similar position.
Price Competition "Retrogressive"
IF a service industry conducted its
competition on price, because of the influence of the public, it would become impossible to maintain standards. In such circumstances the trade would be in a state of retrogression. The quality and value of its service. would diminish, as would its wealth.
This was claimed by Mr. M. H. Riley. managing director of Moorson Products, Ltd., when opening a discussion on " The need for modern equipment." He said that the North American remover, in addition to providing transport of property, also sold to his customer the complete acceptance of responsibility for the safety of the goods. He would arrange hotel accommodation on longdistance moves to ensure minimum inconvenience to his customers. Carpets would be cleaned and moth-proofed, and floors scrubbed. The average American remover bad a lot of equipment and his income was proportionate to the service he gave.
Equipment could be indicative of the quality and volume of the trade, but once an improvement had been made, the continued use of equipment was essential in order to maintain the new standard.
Assuming that competition between removers was on the basis of service, as well as for a share of available labour with other industries on the basis of pay, the need for modern equipment was narrowed down to its relationship with profit-and-loss accounts. It was at this stage that the distinction should be drawn between tool and service equipment. Tool equipment was needed to conduct an already established service, whilst service equipment was required to improve the quality or extend the range of an existing service.
Removers' profits came from the sale and organization, without waste. of energy, time and space. Loss, on the other hand, arose from wastage in organization. or from deductions arising out of damages. The more a removals contractor was able to control these factors to advantage, the greater would be his profit, and equipment was only worthwhile if it enabled him to achieve this object.
Making Best Use of Manpower
I:Ldominant factor in industrial ions since the war had been the general acceptance on all sides of a policy of high and stable employment. This had led to a greater realization of the need to make the best possible use of manpower.
This was stated by Mr. M. Y. Cobb, secretary of the Industrial Training Council, when addressing the conference on "Recruitment and training of young workers in industry."
The drive for greater efficiency had taken three main forms—an increase in the use of work-study techniques, positive action to reduce absence resulting from accidents and sickness, and better selection and training of workpeople.
The Council were concerned with all categories of workpeople up to about craft level, and considered that the greatest field for improvement in training lay among the semi-skilled and unskilled workers who formed three-quarters of the industrial working population.
Mr. Cobb said that it was perhaps the smaller industries, or, to be more precise, the industries comprising relatively small units, which had done leas: in the past, and which could benefit most from industrial training schemes. The benefits to be derived were not solely speedier or more thorough training, but the added attractiveness of the trade to the right type of recruit, and, moreover. subsequent checking of wastage through otherwise rapid labour turnover.
More Skilled Men
CONSIDERING the possibility of ‘•—• inaugurating an apprenticeship scheme in the removals trade, Mr. D. C. Lofts, chairman of the Institute of the Furniture Warehousing and Removing Industry, said that it could increase the supply of skilled men, raise the status of the industry, reduce the frequency of staff turnover and curtail damage. Difficulties which would need careful
consideration, in addition to the cost, would be the possibility of men leaving their employment on the completion of their training, and the implicit restriction of recruitment. The problem of differentiation of payment to trained and untrained staff would have to be solved.
During the subsequent discussion, it
emphasized that a clear distinction d have to be made as to the applin of a scheme to manual and office ers. In replying. Mr. Cobb-said that 'actice employment boards did tend lannel the better boys to industries h had good recruitment schemes. iustrial training schemes could be of culla,help to small employers in areas where the number of potential !Ms did not normally justify suitable .ng classes, but whose need could it by sandwich courses, Tot Needed re
CAN see no necessity for Van . Lines here," said Mr. F. S. Hiblis, airman, Mid-Southern (Reading) !a, when considering the possibility adopting the American pattern in Rain.
7, Hibbs considered that N.A.F.W.R. ided the basis for the biggest Van in this country, whilst some of the r companies were already organized similar basis. The Association prof a handbook and list of members. operated a return-loads bureau. full use of this organization were there was potentially a Van Line istencc with 1,000 agents throughout tritish Isles. The only difference was all help would be voluntary, and .•,.sts, rather than instructions, would :ceived.
considered that formation of Van s in the United States had been ipted by the multitudinous State laws taxes. For example, there were at nine States between New York and Angeles: and a contractor underLg a removal between those two would require to be licensed in State.
lough a Van Line might have :les with such licences, it could also hat within their membership they d have link-ups to effect the ival ivhen the vehicle that collected goods could not make the ultimate ery.
'other factor was, of course, the size he country. Whereas the longest ble road haul in Britain would be nd 600 miles, this would be coned an average local removal in rica.
afirming a atraet
' was customary for some contractors to authorize their estimators to tam n signed acceptances at their stOmers' homes. A contractor, ring received an acceptance in such cumstances, should at once write to customer acknowledging its receipt, 'erring to the fact that the removal d/or storage would be carried out in eordance with the terms and condins of the contract, is was stated by Mr. H. F. Marks, tdiate past-president. who dealt with act conditions.
a dispute eventually went to arbitra tion, or before a judge, it might be held that the value of the contract was diminished, as, although the acceptance bore the words: " I agree to the conditions specified in your estimate and printed on the back thereof,the customer could not possibly have had the opportunity of studying the conditions at the time he signed the acceptance. A letter of confirmation would probably rule out such a line of defence.
Regarding preparation of inventories, contractors should be careful as to the amount of detail entered. particularly concerning damage and description of various articles. If, for example, practically all items were described in great detail as to their condition, and one or more articles not so described were subsequently delivered in damaged condition, the customer might reasonably contend that they had been damaged whilst in the contractor's hands.
Mr_ Marks suggested that when goods were received into store, a responsible person should cursorily examine them in order to obtain a rough idea of their probable value ir realized under the hammer, and insert the figure in the ledger. This would be a useful guide in deciding whether or not to sell goods when charges were more than two years in arrears.
Knowledge of this "credit limit" frequently enabled the contractor to decide whether to sell part only, or all, of the goods to recover outstanding charges, or even to retain them until the credit limit was reached.
Mr. Marks sometimes wondered what would he the outcome of a claim arising from a contractor having sold all the goods to recover charges, and having received a sum so much in excess of those charges that he could be considered negligent in selling far more goods than could have reasonably been held necessary.