Road Haulage a Unique Industry
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WE wonder if there is any other industry in this country in which so frequently the buyer determines the price, irrespective of the views of the seller. We referred in a leader, a little while ago, to what we termed the inferiority complex of the small haulier, in that he is so apt to accept without question the ruling of a customer that his rates are high and must be reduced ; in the closing paragraph we mentioned specifically the haulage of bricks.
It is within the knowledge of all those of our readers who are accustomed to brick haulage that the rates for this work, from being but a short time ago reasonably profitable, have, little by little, diminished and are now at a point where it is questionable if more than a minority of those engaged in this branch is making a profit.
Only the other day, when going through the accounts of one of our haulier friends, we remarked upon a recent cut in the rates, made, be it noted, at a time when a number of hauliers has adopted the practice of adding 5 per cent. or 10 per cent, to ruling rates in order to compensate for increased cost of operation.
When we inquired the reason for this alteration the reply was that the customer had said that the new reduced rate was one which be considered sufficient. Apparently this was accepted by the haulier with barely any comment. We refer' to the matter again after so brief an interval because in our view there are two reasons why hauliers engaged in the transport of.bricks should raise their rates and make a firm stand, insisting upon that increase. The first of these reasons is one already given—that the cost of operation of motor vehicles has risen and is likely to rise still further. The second is the prosperity, of the building industry and of all those concerned in it. They can at least afford to pay an economic rate.
According to a recent report of the Building Industry's National Council, activity in that sphere is at a high level : ".The estimated number of insured operatives in employment establishing a new record." Factory construction is increasing, the progress is widespread, especially in the Midlands and in the North of England. House building is proceeding apace, and public works contracting is such as to establish a maximum demand for material. From this it follows that the demand for haulage in connection with building is likely to increase. Our recommendation to those engaged is that they get together, agree upon economic rates, and, having reached agreement, stand by them.