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8th November 2012
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Volvo Trucks dealer Dennison Commercials is Northern Ireland’s market leader in heavy CVs

Words: Kevin Swallow

Dennison Commercials is the sole Volvo Truck and Bus dealer in Northern Ireland. Wilson Dennison, who started the company in 1970 with brothers George and Jim, remains actively involved, alongside his two daughters Caroline McCaldin and Katrina Mackie.

During the past two years, the Ballyclare-based company has been recognised for its efforts – it won Volvo’s Retail Excellence Award in 2010 and then became the manufacturer’s dealer of the year in 2011. This year it came within a whisker of winning Motor Transport’s Dealer of the Year award. Although disappointed at missing out to fellow Volvo Truck and Bus dealer MC Group, neither MD John Jenkins or sales director Rob Ireland are dwelling on it – there is too much going on for that. Truck sales in Northern Ireland are recovering and market leader Dennison Commercials is at the forefront.

Sales recovery

In 2008 vehicle sales over 15-tonne GVW topped 1,000 units, but the effect of the recession saw that number fall two years in a row to just 358. Last year sales recovered to 540 units, and Dennison Commercials/Volvo Trucks increased its market share to 35.7%. Ireland predicts a similar sales figure this year. “In 2008 the building and construction market accounted for 40% of all sales, last year it was just 2.8%,” he says.

Now customers are more likely to be involved with food and general haulage, with Dennison Commercials replacing a lot of sixand seven-year-old trucks. “We had a lot of buyers who held off purchasing and have now come back to market; progressive fleet operators who understand the benefit of having the reliability and efficiency of new kit,” he adds.

Jenkins agrees: “The difference in fuel and the repair and maintenance cost is massive. They were holding back on renewing fleet because of a lack of confidence in the economy, but you can’t bleed that money on fuel and repair and maintenance.” Greater emphasis is also placed on providing more than parts, servicing and repair and maintenance. Increasingly, Dennison is supporting operators with fuel management to improve returns and to meet the new proposals for the Road Freight Operator Licensing in Northern Ireland.

Jenkins says most hire and reward companies that operate throughout the UK are on track, but own-account businesses that only run in Northern Ireland need help, with up to 10,000 companies applying for a licence.

Dennison Commercials is well placed, as it can provide servicing and scheduled maintenance packages. The dealership needs to continually inform its customers of the Operator’s Licence requirements: “There is a real appetite for it; we talk to the customers and offer advice. It forms part of every conversation we have with customers, and we offer to take care of it for them with structured maintenance programmes.

“Also, operators can access their service records through the web portal, Service Point Online.” With Dennison selling nine out of every 10 trucks with maintenance, the sector is getting there, but Michael Petticrew, finance director, says it’s not an opportunity without risk: “For hauliers, the risk is that it will cost money to bring the fleet up to spec. Without getting better rates for work it could lead to some consolidation within the haulage sector because everything here, including for the supermarkets, is brought in by road.”

Genuine parts

With potentially more cost worked into the bottom line, Dennison also has the job of persuading operators to take genuine Volvo parts. Jenkins explains: “We package it to encourage customers to see the good value in the quality of provision in a fitted genuine component. Buying a cheaper, spurious part may not meet the long-term fitment and it’ll wear quicker. Competition is fierce, but we have a solid platform of parts sales from the four depots. The customer appreciates that and we have to keep reminding operators of that.” Dennison Commercials has £1.2m worth of parts in stock. Separated from source by the Irish Sea, it has to be a high holding figure to ensure first-time pick, currently 94% to 96%, remains high, Jenkins says.

It also maintains fleets of trailers. “We have been maintaining trailers as part of a holistic contract for some time. The volume has come from the introduction of blue-chip business in the mid-1990s in the Irish market – they wanted us to provide everything in one place.

“Since then, we have added another unique trailer contract, and we are looking at other opportunities in this area,” he says.

With the majority of trailer maintenance done in-house by operators, Roadcrew Solutions, set up by Volvo in March 2000, provides all-makes parts for trailers. ■

SALES, RENTAL AND USED TRUCKS

Staff at Dennison Commercials are very excited about the new FH. However, they realise the current FH will be the point-of-sale truck for the time being and it remains their focus for the immediate future.

The longer-term plan is to bring some new FHs into the rental fleet and use these trucks as a way to introduce it to operators and potential new customers. Michael Petticrew explains: “Five years ago we thought rentals would disappear as we only did contract hire through Volvo Financial Services. It’s less risk to us regarding residual values. With the recession changing the marketplace, we have found rental to be a very useful tool to be able to do deals.” Rental is offered from Ballyclare and Dungannon, and will soon also be available at Newry. “We have spot hire available on the British mainland too, so if a customer has a problem, we can provide an immediate replacement vehicle,” he adds.

Rental also provides a good source for used trucks: “If a customer wants to try a particular truck, it’s taxed and ready to go. Putting vehicles on to the spot hire fleet is a good way to let new customers try them. The used truck market is mixed in Ireland. Usually buyers jump on a plane and buy what they need on the mainland.” John Jenkins admits Dennison lost its reputation as a provider of quality used trucks, but insists that will change. “Now we feel the return of trucks is more managed and better structured. More recently, we have been going out to source vehicles and put them on the forecourt, and use the rental fleet as the used truck stock listing – it’s OK to expose it to a week’s hire before it sells – so we are starting to establish ourselves.”


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