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Seeing beyond the recession and planning for recovery while also
Page 53
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taking action to deal with the downturn are key actions that have enabled Lancashire-based and former Motor Transport Haulier of the Year Matthew Kibble Transport to survive and emerge stronger.
It was just 18 months ago that Kibble was questioning the wisdom of a commitment he had made to add five new trucks to his 21-strong fleet, The storm clouds were gathering in the last quarter of 2008. Until then, it had been a relatively buoyant year, but when the recession hit, it was with a speed and severity few would have predicted.
"I knew it was going to be tough," says Kibbe, "but I hadn't spent the last 10 years of my life building up this business just to walk away from it. Early and decisive action was needed, so I sat down with all my team and we agreed a plan to share the pain."
That pain was endured for six months in 2009, with drivers each taking 15 lay-off days on a rota basis. But as a result, no jobs were lost and the business continued on tickover.
Plummeting rates also became an issue with rival operators offering silly prices. "I wasn't going to go down that road," Kibble states firmly. "There has to be profit in a contract, otherwise there's no basis for future investment. And although the end was difficult to predict, I knew that there was going to be an end and I wanted to be ready for it.
"The fact that our business is balanced across four areas was a considerable help. Along with general haulage, where we have a broad spread of customers, we have a warehousing operation, a pallet delivery franchise, and more recently we've diversified into the entertainment sector with a specialist operation providing transport for music tours. Having this range of activities has helped cushion the effects of recession because not all four areas were affected at the same time or to the same degree.
"There was a marked improvement in the last quarter of 2009 and that led me to talk with DAF about some new vehicles. Lead times were much reduced on those being quoted in 2008, prices were competitive, and PACCAR Financial were able to support us with finance packages that included a full R&M contract. The fact that the trucks would be built in Lancashire was also appealing as we like to support local businesses and jobs.
"We'd had a good experience with a DAF XF105 we took on in 2007, and our drivers liked the model, not least for its spacious cab. Service from the local dealer, Lancashire DAF, is also very good, and they service the trucks overnight on a Friday, even providing a van for our driver to get back to base."
As a result of all these factors, Kibble made the decision to order six. Five of the XF105s are now running in the general haulage fleet; these are mid-lift axle FIG models. The sixth is a two-axle FT model for use on the music tour side of the business, and this model has since been followed by another.
As the firm emerges from recession, it's clear that keeping a cool head has paid off. When the downturn hit, the company was running 21 trucks and now it has 27, with the age profile of the fleet being younger too. Kibble has learned how to deal with downturns and, as a result, this is one progressive company that is well-placed to prosper as the recovery gathers pace.