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Fresh fields beckoning

4th August 2005, Page 74
4th August 2005
Page 74
Page 75
Page 74, 4th August 2005 — Fresh fields beckoning
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Which of the following most accurately describes the problem?

The trick to any successful business is to know when to change direction — independent truck and trailer retailer Kel-Berg has set its sights on a growing 'alternative' marketplace. Brian Weatherley reports.

Kel-Berg's Simon Hall is definitely not impressed with the used truck market: "It's very difficult, but I can't give you a particular reason as to why it's so slow, It seems to be affecting everyone in the UK. Certainly on '01' equipment — or anything back before '01'— people just don't want it. It's not that they're complaining about price or spec; the buyers have just gone away."

Phil Oakey. Hall's colleague in Kel-Berg's construction equipment division, echoes that sentiment:"The general haulage industry is very quiet at the moment. If people are looking they only want late, fresh stuff."

Listening to Hall and Oakey you might assume Kel-Berg is about to turn its back on its traditional new and used flagship tractor retail business. In fact the company remains strong in both sectors, as witnessed by the collection of new (mostly 4x2) Daf XF95 and Volvo FH tractors in left and right-hand drive standing in the yard. But how can Kel-Berg have them in stock when other franchised dealers are struggling with short supplies and long lead times? "We get them from the factory," says Hall, with a smile.

Shifting focus

However, as the nature of used truck retailing continues to change Hall reveals that Kel-Berg is beginning to shift its primary focus:"We've seen that selling into the traditional general haulage market sector has become increasingly difficult. That's why we're setting our stall out now in the construction field.

"We've been cranking up our construction activity and also our added value business," This high-profile Oxfordshire-based independent continues to impress, not least when it comes to the level of stock on display. And a quick stroll around the company's Weston-on-the-Green site underpins its interest in specialist construction kit. Four, six and eightwheeler mixers are available from stock: on the day CM visited a number were awaiting collection in the liveries of major construction and mixer operators.

However, it's not just mixers that Kel-Berg is interested in. Hall reports: "We're also doing tipping trailers and rigid tippers, as well as drawbar tippers and brick and block carriers.., stuff that's a little bit different and that you can't get from other people."

The mixers Kel-Berg supplies are equipped with barrels from Spanish-based Barival, for whom it acts as UK agent.The Barival name may not be too familiar to UK tippermen but Hall says: "We've refined it for the UK. It's got cable controls and they represent good value for money.

"We'll do the full package," he adds. "We've got them in the yard right now, They're ready if you've got the finance, or we'll do it through HP or leasing."

Kel-Berg is planning to do more long-term rental and leasing deals on specialist kit: "We're starting to roll out our rental and leasing and buyback operation, but we're not looking to do spot rental."

Oakey points out that Kel-Berg's wellpublicised involvement with drawbar tippers has been driven by operator demand. "Drawbar tippers are big for us.They're a good way of complementing an existing 8x4 because you can operate at 44 tonnes and still provide good flexibility as you can run the prime mover on its own if you want to.

"Payload-wise you're looking at 20-21 tonnes on an 8x4 whereas you can get 29 tonnes on a 44-tonne drawbar."

Hall reports that one of Kel-Berg's customers is even using a drawbar rig for asphalt work.-They're not for everyone," he says,"but they can prove very flexible."

While general haulage may currently be suffering from a lack of confidence the construction industry appears to be holding up fairly well, boosted by recent good news on the 2012 Olympics."The Olympics being awarded to the UK will be very, very good for construction and for us," Hall predicts, "There's a seven-year building and development window. People will want equipment and we'll be able to offer it."

Waste possibilities

Alongside construction Hall says Kel-Berg is also considering expanding into the waste sector, not least through drawbar RO-RO vehicles and hook/skip-loaders.

On the trailer side that could mean selling moving-floor and ejector products, not, least as bulk operators are reluctant to use tipping trailers on badly made up landfill sites."It's a growing market," says Oakey,"and health & safety is pushing people down that road."

There are plenty of new trailers on display in Kel-Berg's yard but no sign of a bogstandard dry-freight box or curtainsider. "Nowadays curtainsiders are just built on price," Hall believes. 'We will still offer them but at a premium price because of our build quality and the fact we're doing smaller numbers" However, in line with Kel-Berg's growing emphasis on construction, what you do find is tippers and bulkers:"When it comes to trailers we'll build to special needs with generally the same chassis, but with a specialised body on top and with things like rear steering," says Hall.

"We've got a 30m' alloy-bodied aggregate tipper with a steel chassis and steel wheels and can still put it out weighing 5,500kg. But we don't sell on price. If you can add value to it, that's the key. All our trailers are built to fit an individual need. We offer good quality, competitively priced trailers rather than extremely cheap trailers."

According to Hall, used tipping trailers are much sought after:-We can't get enough of them." And the changes at Crane Fruehauf have also affected the market: "It's given people a reason to look elsewhere."

However, Hall's parting remark emphasises Kel-Berg's attitude to changing demands: "You've got to watch what the market is doing all the time." •

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Locations: Oxfordshire

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