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High interest squeezes stocks
Page 104
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• Higher interest rates are making it even less attractive in the short term for workshops to carry large stocks, Motalink managing director Pat
Clifford told Workshop.
The total LIK market for workshop consumables is currently put at around £250 million plus a year, with van shares expected to account for an increased share (at present around £55 million). Motalink claims to be Britain's biggest van sales operation with around 20% of the market.
The present situation will encourage growth in its sector, says Clifford, and there will also be an increased demand for better quality tools. The company carries 1,400 different components and has a back-up service for non-stock goods coordinated through 15 regional depots and sub-depots.
Motalink, part of the Connecticut-based Barnes Group multi-national, expects market patterns basically to follow those of the USA, with the demand for higher service levels reinforced by the registered stockists' scheme under the BS 5750 Quality Assurance Standard.
The move towards artics in preparation for 1992 coupled with expected trends towards rental or leasing among hauliers — prompted by "offbalance sheet" accounting — is also likely in the firm's view to improve market conditions for van sales distribution.