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It takes a cool head to launch a haulage business
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in today's turbulent climate. Yet Les Mates did it successfully and has just moved to a new West Country base to get closer to his
major customers. Steve McQueen reports.
Financial risks and personal sacrifices are high on the list of things to think about for any driver who wants to become an operator. You must find an operating centre, a couple of vehicles, and, of course, some work. And for those who decide to take the plunge, it's not simply a question of whether to take a risk—that comes with the territory. It's more about assessing how big the risks are going to be.
Just over DS months ago Les Mates took out a loan, bought brand new equipment and set up as Les Mates International at Aldershot in Hampshire. A comfortable profit in the first year ensured survival, and last month he took another major risk: he uprooted the family and the business and moved to the other side of the country in Avonmouth, "The South-east in general has a shortage of transport yards. particularly around Farnborough, Aldershot and Camberley. where I was looking," he says. "The first depot was on military land, with about 37 other operators who were also tenants. When the military wanted it back I was forced to move and I decided to look much further west."
There were strong reasons for this. Mates' major customer is Monex, which supplies automotive parts such as brakes, exhaust systems and cabin fascias for car manufacturers such as VW, Ford and Jaguar. Monex was the eighth fastest growing company in Wales last year, operating out of Avonmouth, as well as from two locations in South Wales and Minworth in the West Midlands.
It seemed logical to move closer to the customer—and not long into the search for a new base. Monex offered Mates office space and land ▪ for parking inside its Avonmouth complex. g So rather unusually. the company has its .8' second fresh start within two years. That's not , k the only unusual thing about this new opera‹
tor. For instance, it's not every operator who g gets up and running with new kit right from
E the word go. But Mates felt this was a risk that 0 36
was worth taking: "The quality of your equipment says a lot about the quality of your service. I want to build a company with a turnover of around .farri a year and I'm not going to do that subcontracting work that has very little margin.
"I've got to go direct to manufacturers and they want reliability, so I won't buy secondhand because I don't want to inherit other people's problems," he adds. "So far I've committed myself to an investment in trucks and trailers of overi2,5o, 000 and I've a good business relationship with the people who've supplied me with equipment."
However, Mates had work lined up before he signed the finance agreements: "In January last year I put a business strategy together with the help of a business adviser from NatWest Bank and a CD he gave me to put into my computer—I can't fault the bank for its support. Then I had to convince my wife, who has a banking background, that a haulage business could be viable. That wasn't so easy, but I knew where I could get work before I made the financial commitment."
Early connection
That work came from a variety of sources, but the most important of these was the early connection with Monex: -The company is expanding, so there is potential to increase the volume of work and it pays me promptly. That's important at this stage of the company's development... it's important at any time." The arrangement with Monex for the operating centre is a win-win situation. Monex gets an operator prepared to commit its vehicles as a first priority; Les Mates International gets a home and a steady flow of well paid work, while retaining the freedom to source work from elsewhere if required.
"A lot of bigger operators have lit tle concern for the customer and I've worked for some of them," says Mates. -They have the attitude that 'it's our trailer and truck and we are the experts'. I look at things very differently. The customers' money pays for the finance on my trucks and trailers. I look after the customer first and foremost, but I won't work for nothing and all my customers know that I'll park my trucks up first."
Fortunately that's not a problem that the three-strong Les Mates International fleet has had to deal with so far. At the moment the trucks are permanently on the road, but increasingly with the proprietor back home in the depot behind the traffic desk. So how does he take to being an ex-driver in charge?
"The driver is the first person that any of your customers see—it's no good having all the right kit and a stroppy driver," he points out. "Not all the big operators appreciate that, so I wanted my drivers to feel rewarded for doing a good job. I set a wage structure when I started and I wanted them to make £450 clear a week, including nights out.
"1 try to get drivers who understand the international scene and this is not always easy.
I've actually employed a retired driver who knows the game inside out. He is very security-conscious, his administration is first class and he's a great ambassador for me. You get what you pay for and when you're sending a driver abroad with a load, that's the kind of approach you need."
A significant proportion of the loads that these drivers take is sourced through the Austrian freight forwarder LKW Walter. Glassware is a common consignment from the UK bound for Italy; ceramics are typical return loads.
However, runs for Monex form the major part of the international transport operations. They usually begin with a run to Germany, on a Sunday. The outward journey will often include empty stillages or brake part; Cologne, Bremmen or Hamburg. C reloaded the truck returns for a switchov4 Ashford or Calais on the Wednesday with y for other vehicle plants, and the driver rep the outward run. -You can do two Geri trips comfortably in the week that way," M explains. "I have two drivers almost per nently abroad at the moment, but with ano driver starting soon, I'll then have three."
Having made the decision to set up business, Mates says he chose internati( work after driving for a variety of sped; operators at home and abroad for ovei years. In that time he's learned to talk tui with transport managers in several langu; including French, Spanish, German Italian. His flair for languages has ope doors and resolved a few sticky situations foreign officials— and it's also helped the cash flowing in.
"I am very strict with money and I've able to use my wife's financial experienc help with credit checks," he says. "So far, worked successfully. Of about 6o compa: on the database, only one of them has gi me any problems—a French company ov £198 but speaking the language helps." For any operator. and particularly a tively new one, that's the real key to succ