1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148 
Businessman with a spring in his step
Page 136
If you've noticed an error in this article please click here to report it so we can fix it.
Colin Sowman meets Robert Gerrard — the former small workshop manager who now runs GME Springs with the help of a 10-year plan for European expansion
• In 1971, Robert Gerrard ran a small commercial vehicle workshop in the Midlands with his brother Jack. Today Robert is managing director of GME Springs, based in Coventry, the UK's leading independent aftermarket spring supplier. His entrepreneurial talent is something that many would like to emulate and, with the coming of 1992, he believes that UK businesses may get the chance to show similar flair and enterprise.
When running his workshop, Gerrard found difficulty in obtaining replacement vehicle springs, so he started to build up stocks. Operators and other workshops were soon using him as a stockist; by 1979 he was supplying 200 springs a month and he sold his workshop off to concentrate on factoring. Demand continued to grow to such an extent that 18 months ago he bought a spring manufacturer. Today, through its four depots, GME is selling 8,000-10,000 springs a month and has now started supplying brake drums.
Throughout the company's history, Gerrard says he has been fighting vested interests and cosy agreements between manufacturers. "We have forced prices of springs down," he says.
Gerrard now has to compete hard to sell UK truck springs, and he believes that cartels still exist in Europe. If GME were to establish an operation in mainland Europe, Gerrard says that his Continental manufacturers would stop supplying him. Many of them also supply the vehicle manufacturers and so will not supply any independent outlets in mainland Europe. These "gentlemen's agreements" lead to unnecessarilly high retail prices for some components.
Gerrard cites the example of German truck drivers who, after delivering items manufactured in Germany to GME, will purchase any replacement spring they require arid take it back to Germany, saving a considerable amount of money.
GME also receives regular inquiries from Continental operators wishing to buy springs, but there are difficulties in getting supplies to them. Gerrard explains: "In our experience, exporting to the Continent is bound up with paperwork to such an extent that you probably lose the order by the time it is cleared. Coming the other way it is just a rubbei stamp job." Despite all thes( difficulties GME's 10-year plar is to become one of Europe': largest aftertnarket spring an brake drum suppliers.
The company has beer approached by vehicle manufac turers to supply original equip ment, but Gerrard finds tha they expect unreasonable dis counts for volume. "Turnovei is vanity, profit is sanity," hi says. "Our company is founde( on good quality, good stock: and good delivery. It does no have to be the cheapest."
For the UK in general, Ger rard is also optimistic, believim that we underestimat( ourselves. Some Continenta hauliers who deliver to GMI have their trucks serviced ir the UK because it is cheaper He also finds that if transpor for a load of springs is bough in Germany, it costs 220( more than the same trip by th( same haulage company i arranged in the UK.
It is his view that "Thes( only represent the tip of th( iceberg of higher prices tha result from the non-cornpetitiv( nature of some Continenta companies. When the barrier: come clown in 1992 the UP manufacturers, suppliers ark transport companies have mor( to gain than their Europeat counterparts." Finding tin mark-up on brake drums to b( similar to those on springs Gerrard is now stocking thes( items and can under-cut tin European manufacturer's prices.
In the run-up to the single Europear market, Gerrard believes that UK corn panies must remain independent and avok becoming restrained by these gentlemen': agreements via their European partners But thanks to the UK's competitive mar ket, he reckons that we are well placed t( win a good share of the European busi ness — so long as that efficiency ant independence is retained.