Owner-driver speaks out Yes, we are viablE
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KEN TROWELL is one in 30,000 Not, happily, the victim of a rare tropical disease, but one of the 30,000 owner-drivers who, according to the Road Haulage Association, work in the industry.
Over the years accusations have been made that numbers of owner-drivers lack professionalism, indulge in rate cutting and are more likely to fall down on vehicle maintenance than other sections of the industry. Did someone say: What about illegal operation? So in order to find out the views of a responsible owner-driver, I spent a day with Medway-based Ken Trowell, who specialises in carrying concrete products.
Ken, who is 35, has put 20 years into the business, he left school at 15 to become a lorry driver's mate. His father and uncle are drivers, and Ken felt it was inevitable that "I'd be some sort of lorry driver."
Equipped with his hgv licence, he worked for several companies, and did a stint, with Bullens, on TIR work, where driving Atkinsons and Fodens gave him a taste of the Cummins engine, his first choice today.
Like many self-employed men, Ken wanted to be his own boss.
"I got fed up working for other people, so in 1972, helped by redundancy money I'd got working for BRS. I bought a 1967 Albion six-wheeler with a flat body and started doing haulage for a local brick company," he told me.
Ken's customer proved more than sympathetic. "I explained my cash-flow problems to the transport manager who told me to work for the week, write my invoices over the weekend and drop them in before I began work again on Monday, and he saw to it I got paid on the Tuesday."
Looking upon his vehicle as an investment, Ken spent money and his spare time on painting the Albion and keeping it in good running order. The effort paid off a year later when he sold it for a profit and bought an H-registration AEC four-wheeler with which he continued his brick haulage work, as well as carrying concrete pipes and fit tings for Milton Pipes, a private company in Sittingbourne.
This work increased and in 1974 the company asked Ken to supply a larger vehicle. The AEC departed, again at a profit, and Ken began work with his first artic, an Atkinson Borderer which he ran with a rented trailer until he bought his own new one. Although reliable, Ken felt that the Atkinson had become "a bit uncomfortable, so I sold it in 1975 and bought an L-registered 1418 Mercedes, which was more comfortable but had no power".
By 1976 Ken had made enough money from.each vehicle to afford a new tractive unit. "I hadn't planned the wheeling and dealing on my part, but I never lost money. I bought vehicles in reasonable condition at auctions, did them up and sold each one for a profit. I must have been doing something right because after my fourth secondhand vehicle I
bought a new Leyland Ma thon."
The Marathon stayed nea three years before it went in p. exchange for a new T-regist tion Ford Transcontinental. choice was predetermined driveline. "I'm a Cummins a Fuller man, and at the time t choice was between the Foci( ERF, Seddon Atkinson or Ford.
For him the Transcontinen had the best cab, so he bouE the Ford.
Today, almost ten years sin he left the comparative secur of employment, Ken runs thr Transcontinentals, having add a V and X registration to the fl( which pull six flat trailers, four which he recently bought frc Rentco, and a Tautliner he hir out to sub-contractors for fr haulage.
For good measure, as well the two self-employed full-tir drivers working for him, he e ploys two sub-contractor own Irivers, filling in on the work he an not handle himself, and durrig holidays, which for Ken Iren't very frequent.
While Ken and his vehicles are lway working, his wife Elaine, a :PC holder through grandfather ights like Ken, runs the traffic iffice from home and co-ordilates the drivers who phone in egularly. Most of Ken's regular ;ustomers know Elaine, though ome still betray a trace of chaurinism when talking to a woman raffic manager. "Some men just hink you're silly when you ansver the phone but they are soon proved wrong," says Elaine. 'Besides, there are more and nore women branching out into ransport every day."
Ken's work is now mainly split ietween two contracts, Milton pipes, for which he carries oncrete products up to the Midands, and Charcon in Derby, vhich manufacturers paving ;labs and kerbstones and back oads him for the South. "They ire what I call my bread and buter," says Ken, although the re:ession has hit the building ndustry. "It did go quiet," Ken oxplained. "We get bad times ike anybody else and August lolidays and winter periods vhen you can't do the digging ilso affect us."
Did having success prove to (en that owner-driving is a /iable operation? Ken remains In enthusiastic advocate of the ;mall man who can compete with big firms, "just as long," mys Ken, "as his low overheads ion't mean low standards."
However, he does not believe 3n owner-driver can earn a living without owning a trailer.
"Without one you have to go lhrough freight forwarders and can only charge 53-54 pence a mile traction, and that's not enough for anybody. If you've got a trailer you can name a realistic price."
Bad experiences with clearing houses have left Ken wary of middlemen. "You spend so much money on solicitors waiting for payment that you might as well not do the job. I took two of my vehicles over to Holland for a Midlands firm and it took me eight months to get three quarters of what I wanted, and they went bankrupt."
"Freight forwarders take the cream off the top; you've got to use them now and again, but you'll never make money out of them."
Ken has not much patience either with unprofessional owner-drivers and is happy that legislation is weeding them out. "I'd say that they are on the de crease. It's harder to get in the business now and that's a good thing. The two that work for me are very conscientious over vehicle maintenance and operation." According to Ken, it's the responsible operators who will succeed in business.
As an owner-driver, Ken is a strong believer in working directly with the customers. "This is something I can do better than the driver who just jumps in a vehicle and picks up a weekly pay packet. If I want to go back again, I've got to keep him happy. My livelihood depends on the customer so you have to bite your tongue sometimes."
The low overheads that owner-drivers have has led many larger companies to accuse them of rate cutting, particularly during the current economic squeeze. "I would argue one hundred per cent against that," says Ken.
"It's the largest companies and I know many that are the worst culprits; they spoil it for everybody and I've seen it from both sides. The contractors that are part of a large group can absorb the loss, but not me, I'd go out of business."
Does being an owner-driver of ten years standing make him any more understanding as an employer of owner-drivers himself? Ken felt that it does, though added; "I'm still in business to make money."
His choice, however, of subcontractors helped avoid disappointment on either side. "I knew them both before they worked for me and they've always looked after their vehicles."
Although they supply only tractive units, Ken pays them per trip rather than traction. "I charge them for the rent of my trailers, and keep the responsibility of up-keep and maintenance. That way I'm sure of stan dards, at least of the load."
Ken prices his own work, using a number of factors including tables, maintenance, but most important what his own units are actually costing him. "I'm very strict on fuel, and know what to expect from each vehicle using regular tank to tank checks." Running with high gross weight but low height, loads, Ken's two late model Fords regularly return around 8mpg, while the T registration Transcontinental that Ken has gone back to driving after a spell on the newer Fords returns an average of 40.3 lit/1 0 Okm (7mpg). "Not bad for a unit with over 300,0(00 kilometres on the clock."
To keep downtime to a minimum, Ken carries out all his routine and regular maintenance at the weekends. "From an owner-driver's point of view the only time I want my vehicles off the road is when I'm not working, which for me is Saturday afternoon and Sunday, but you name me a garage that works those hours. Yet it's the strongest argument I know for weekend maintenance."
Ken employs a fully qualified fitter who works on the vehicles over the weekend and he also lends a hand himself. "It's the only way to survive; put vehicles into a garage and you notice the difference. I also reckon that I do a better job, though if I get any bigger I'll consider contract maintenance."
Ken would like to see a place that caters solely for owner drivers along the lines of a transport co-operative where they can use maintenance facilities themselves or put the vehicle into a full-time fitter. "I've often thought about expanding my yard to lay on facilities for owner-drivers. It's an ambition of mine to run a place that lays on servicing, fuel and overnight parking for owner drivers." The latter Ken thinks is particularly important in light of the charges at motorway services.
"I begrudge paying money for parking that I have to do by law. The services should be looking to improve facilities in line with the eight-hour day, yet as far as I know the only shower for drivers in all the M1 services is at Blue Boar, Watford Gap. They must think we don't wash."
Some owner-drivers, however, are their own worst enemy, in Ken's mind, particularly those that have no yard and park on the street. "I've always asked my neighbours if I've had to do it and I've had no problems, but you do get people starting up at two or three in the morning and it's no joke."
Trade organisations have frequently courted the ownerdriver as a potential recruit although Ken has let his RHA membership of five years slip. "I never really used them, perhaps because I never got into trouble."
Finding an organisation appropriate to owner-drivers has been a problem for Ken, who joined the Federation of Self Employed. "But they were more interested in grocers, and never really catered for drivers." Perhaps the prospect of 30,000 potential subscriptions might prompt the Road Haulage Association into considering an owner-drivers' section.
The biggest problem in any small business is cash flow and Ken admits that getting money in can be a problem. "I have good customers, but when you have to wait three months to get paid and still find cash for fuel you need a backup". Simple changes in accounting methods by customers, particularly in switching over to computer systems can cause unnecessary delay, get bills sent back to me with queries that aren't even my problem."
Although Ken believes strongly in the personal app roa ch , he does not avoid working with larger contractors. "I use one or two large companies as sub-contractors, but the same ones. I still prefer to work direct and in some cases customers have asked for me instead of a bigger operator."
While Ken is quite happy running his three Fords, he continues to look at other vehicles, particularly in terms of reliability, which is vital to an owner-driver with limited resources. For his money, Ken thinks the DAF is the best owner-driver vehicle having a very good back-up service. His original policy with the Transconti's was to replace them after three years although his T reg 4427 is such a good vehicle. "It hasn't quite worked out; the only thing I've had to replace after 300,000km is brake chambers, which I expect to go, and small odds and ends. I haven't had to touch the engine at an.
"I know you're not supposed to get sentimental about a wagon, but it's earned me so much money it's a shame to sell it." Ken does, however, heed the advice of his accountant. "He tells me what to buy and what to sell. It costs me about £250 per year but it's worth it." His usual approach to vehicle purchase is "buy by hp but put as much down as possible and keep the payments low."
From the business profits Ken puts aside regular amounts for vehicle and trailer replacement and is proud of the fact that he has never borrowed from the bank.
Vehicle leasing is not, in Ken's opinion, suitable for owner-drivers. "It's not worth anything as you have no assets. My Marathon was a big step — £14,000 as opposed to the £3,000 or so I'd been paying. It's tempting to lease it, but it's a false economy paying over periods of up to five years. If you buy it outright, at least you own it."
As his own boss, Ken is nevertheless never afraid to take the advice of others, even when loading up at Milton Pipes where the large indivisible concrete products need care to avoid overloading. Milton, which uses owner-drivers exclusively for transporting its products, have got it to a fine art. While each driver collects his documents the unit is weighed empty before proceeding to the loading area. The forklift and crane drivers are used to positioning the well marked loads and, unlike many of their kind, spend a few minutes talking with the driver working out the best place for each pallet.
The fully laden unit then returns to the weighbridge before leaving for the final check. The extra time is worth it, so far as Ken is concerned, especially as it is the driver who is ultimately responsible. "I've never had a wrong one yet that required reloading."
• Tamworth is the usual drop for Ken in the Midlands. He then runs empty to Charcon at Derby and to pick up his backload. The lightweight, low-volume products are appreciated by Ken. With the flat loaded with 20 tons of paving slabs the highest point is the top of the Ford's cab.
Like steel carriers, Ken Trowell is one of the few contractors who can benefit positively from increased weights, though strangely his preference is for changes in tractive units rather than trailers. "As regards the extra axle — I'd jump at the chance of three-axle tractive units, though we'll have to wait and see. As it is, all mine are plated at 44 tons so if weights go up tomorrow based on 4x2 tractors I'd just convert the trailers."
All three of the 4427 Transcontinentals have been fitted with a number of extras including stainless steel vertical exhausts, that to some operators may seem unnecessary "glitter". Ken has his own views. "Working for companies making concrete products, you have to drive into some dusty yards. With a conventional exhaust I'd stir up a fine cement dust that gets into everything, especially the inside of the cab which takes hours to clean out."
"Apart from that it's quieter and as I'll probably sell the unit to another owner-driver, anyway, who will appreciate the standard its been kept in; it helps to retain the value."
Ken has also had aluminium chequer plate put over the battery, fuel and air tanks as well as the wings, keeping up the vehicle's appearance — sorni thing thinks Ken that not enoug hauliers do. "I've had customel compliment me on the vehicl so it's just another part of cu tomer relations."
According to Ken, a goo( looking vehicle "goes a Ion way in gaining public confidenc in road transport, which has gl a bad image amongst mar people. Small firms can go long way to help improve th image."
While showing one of hi vehicles at a local steam rail' Ken found the public far fror ignorant on road transport. " surprised me the number ordinary people who asked m questions about increase weights and three-axle trailers.'
Although Ken is prepared t improve the appearance of vehicle, the basic specificatio has to be right first time, SOMI thing he has not found with th Transcontinental when it comE to overnight parking. The ca lost too much heat so he adde extra insulation, which, for Kei is all wrong. "You shouldn have to spend £30,000 on vehicle and then convert it bo cause it's cold."
What quality is it then that ha allowed Ken Trowel! Transpoi to expand at a time when man similarly small operators, part cularly in his own area, hay gone out of business? "Keepin the same personal touch," redl ons Ken. "I've just got through people tell me I'm doing we when they see me with a nes vehicle in the recession. But ar we through it?"
Survival for Ken, however, ha brought its own, if somewhe unique, problems. "If I get on more vehicle I'll have to corn off the road and that's a big dec sion." For ironically, Ken's su( cess threatens his position be hind the wheel as expansio would mean his relinquishin the driving seat to take a mor active part in the business an traffic operation side.
It is a paradox Ken readih acknowledges, yet he has ni qualms about his abilities as transport manager. "To be he nest I think I could make mon money, but I'm happy as I an and I don't know whether I'd bl happy in an office." A transpor manager can add to a large company's overheads, Kei feels. "Most of them have to many working inside anyway.'
Indeed, if his success is an' yardstick, larger operators ma, well be thankful that for the pre sent Ken Trowell is happy to stal as a one-man band rather thai become the conductor of hi: own orchestra.