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United they stand

4th September 1997
Page 18
Page 18, 4th September 1997 — United they stand
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Which of the following most accurately describes the problem?

Three body and trailer builders have been combined under the United Trailers banner in the east of England, but will still compete with each other for business. Local rivals are puzzled by the move.

by Steve Banner • East of England body and trailer builders Wisbech Bulk Systems (WBS), EM Wilcox and Bridge Bodies have all been acquired by newly formed United Trailers for an undisclosed sum.

United has been set up as a holding company by Geoff Mountain, Barbara Prigmore and Darrell Kershaw. Mountain is a director of on-board weigher specialist PM On Board—there is no formal connection between United and PM—and Prigmore is the widow of former Wilcox Group owner Ted Prigmore.

Perhaps most surprising is the involvement of Kershaw, a former director of retail motor parts and accessories chain Motorworld and a successful and wealthy businessman.

WBS and Bridge Bodies were both started and run by former Wilcox employees, and EM Wilcox was owned by Crane Fruehauf's parent group, SESR.

Bulk-blower specialist WBS's managing director George Booth insists that United is not recreating the old Wilcox Group: "What we're doing is completely different."

WBS, EM Wilcox and Bridge Bodies will continue to trade under their own names, he says, and rival each other for business: "United wants to maintain the competition between them."

Vulnerable

Rejecting suggestions that Bridge Bodies is vulnerable to closure, Booth says United needs its capacity and that there are no plans to axe sites or jobs.

The group's formation will allow savings to be made, he adds, mainly by centralising administration and using group purchasing clout to obtain bet ter terms from suppliers. The rising cost of aluminium has been a particular problem in recent months, says Booth.

United's creation is the latest of several mergers and takeovers in the UK trailer industry, and in the east of England in particular. Overlander Trailers acquired the intellectual design properties of Wisbech-based Maxilode Transport Equipment and is now producing the Maxilode range of skeletals at its Kidderminster plant (CM 21-27 August 1997).

WBS aims to build 350 trailers this year at its Wisbech factory. "The UK trailer market is improving compared with six months ago and is 25% up on 1996 levels," says Booth, "although last year was particularly poor. Sterling's strength has affected our exports. WBS used to do a lot of business with Eastern Europe, but this has now slowed to a trickle."

The 16 staff at Bridge Bodies' plant at Sutton Bridge, Spalding, Lincolnshire, are building 60-70 bulk blowers a year and are currently fulfilling major contracts with Dalgety and Bibby.

Market Deeping, Lincoln

shire-based tipper specialist EM Wilcox is building two trailers and six rigid bodies a week.

United's formation has surprised some neighbouring trailer and body builders. "It's a strange move given the problems of the tipper market," says Carl Watkins, sales and marketing manager at Nene Trailer Services, also based in Wisbech.

"Tipper prices have come down and down, and nobody seems to be making any sort of money out of bulk blowers either."

Watkins wonders whether, ultimately, just two of the trio will survive—WBS concentrating on blowers, and EM Wilcox on tippers.

"I can't really think that they will continue to operate three separate firms," says Richard Lancaster, general manager of Weightlifter. He believes United's formation could benefit other body and trailer builders because customers who have tried to, say, play Bridge Bodies off against WBS may feel they can no longer do so, and may be tempted to go elsewhere.

Compete

And Lionel Jones, managing director of Rothdean, says: "I suppose it's one way for Geoff Mountain to protect PM On Board's market. Most of our business is in the West Country, so we don't compete directly. We're busy enough, but the tipper market isn't a healthy one."

The merger is taking place against a background of growing skill shortages in the east of England. Although WBS says it has experienced no problems yet, both Nene and Bridge Bodies report difficulties in recruiting skilled workers.

"We expanded from five to six production bays earlier this year, but we're back to five now because of a shortage of labour," says Nene's Watkins. "We're looking for good welders, and we could take them on tomorrow."

A Bridge spokesman says: -Aluminium welders and hydraulic and pneumatic fitters are a rare breed at the best of times, and we're finding that young lads don't want to go into these trades."

However, EM Wilcox is enjoying some success in training youngsters from scratch through the Modern Apprenticeship scheme.


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