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Survival of the fittest

9th August 2012, Page 23
9th August 2012
Page 23
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Page 23, 9th August 2012 — Survival of the fittest
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Which of the following most accurately describes the problem?

Flexibility, co-operation and a sense of humour have helped a south Wales operator weather the economic uncertainties of the past few decades

Words: Bob Beech / Images: Tom Cunningham For many hauliers, the ability to respond to a changing marketplace is key to their long-term future. The business climate can alter overnight, so in today’s global economy, long-term economic planning is, at best, educated guesswork. One area that has changed enormously over the past few decades is the industrial heartland of south Wales. Coal mining, steel and tinplate manufacturing, along with allied heavy industries, dominated the economy of the region for the best part of a century and created demand for road transport. Dozens of companies in the region met this need, many building up substantial leets to transport steel and coal.

The miners’ strike in the early 1980s was a turning point for the region. The closure of most of the deep coal mines saw a dramatic reduction in demand for transport. Opencast mining is still carried out in the area, but coal is often moved in bulk by rail.

The reduction in car production and other heavy industries saw demand for strip steel in coiled form reduce dramatically, and many hauliers struggled to ind alternative work. Some steel is still transported by road, but large quantities are transported by rail and many operators were either unable to adapt or reduce leets quickly enough, resulting in many going out of business.

Surviving through all this, are brothers Mike and Mark Greene, who started their transport business M&M Greene Services in the mid-1980s, the beginning of this period of upheaval. Unlike many others, they adapted to the changing marketplace and thrived despite the challenging economic climate. Furthermore, they have recently put a new Mercedes-Benz Actros unit into service, one of the irst customer order vehicles in the UK and the irst to go on the road in south Wales.

The fact that the truck was ordered last year when the range was announced, and without seeing it, speaks volumes for the brothers’ faith in the Mercedes brand and the strength of the relationship they have with their local dealer Euro Commercials and, in particular, their local sales contact Steve Bastin.

To make the new truck stand out, they chose the top-of-the-range 2551, with the towering Gigaspace cab and a host of extras, or as Mike Greene puts it: “We ticked every box on the options list.” The result is a metallic green and red unit, set off with polished alloy wheels and a host of Kelsa lightbars, which heralded the tongue-in-cheek comment from Mike: “Mercedes spent millions designing the cab to be as aerodynamic as possible and then we had all this stuff bolted on.” Although this proves a sense of humour is vital in road transport, it is not enough to survive and prosper in a tough market. Mark explains: “We come from a transport and farming background and were offered the chance to get up and running when a local feed mill gave us the chance to buy two latbed rigids. It offered us work delivering bagged animal feed to farms.” Although the Leyland Clydesdale and Dodge/Commer Commando are a far cry from the trucks the company now runs, the Commando was itted with the rare option of a Mercedes engine, introducing Greene to the three-pointed star.

“We are based in Cross Hands, close to the industrial areas of Swansea and Llanelli, and on the edge of the rural areas of west and mid-Wales and we can turn our hands to different types of work,” says Mark.

“This lexibility served us well over the years and in the 1980s there was some road building and developments. Quarries were looking for hauliers, so we bought rigid tippers that gave another dimension to the business. We also carried coal and our vehicles were working at opencast sites; this was good at the time.” Mark says the irm has been through three recessions since starting and has seen many operators expand rapidly in the good times and fail when work falls off because they have over committed. “We kept running older trucks through the hard times,” he says. “We tried to be cautious and keep our options open and even now we have a range of work. It helps to spread the risk and most of our customers have weathered the recession very well.” One major customer is a local sand and aggregate supplier that dredges sand from the local estuary and supplies it in bag and bulk form to builders’ merchants, construction companies and other users throughout the region. “We have developed as its operation has expanded and it now offers a range of products, many of which we collect in bulk from quarries and suppliers over a wide area,” says Mike As a result, M&M Greene operates rigid and artic tippers, along with latbed and curtainside trailers. The intensive nature of the operation means trailers are pre-loaded at customers’ premises and units are rarely kept waiting. They drop off an empty trailer, collect a loaded one and are away again.

“Much of the work is local and the fast turnaround means we get good productivity from the leet without having to push too hard. Many of the deliveries are to regular destinations and we understand our customers’ and their customers’ requirements,” Mike says.

“The workload varies and we might have to respond quickly. With our 30-plus trailers and a number of local subcontractors we are able to cope, but it takes a bit of organising. Also, the servicing and maintenance requirements of the large trailer leet has to be taken into account.” Co-operation between local hauliers is a good idea in principle, but dificult to achieve in practice. However, events from the past decade have had an effect on local operators. “We have been RHA members for years and our father Alan served at a senior level. As a result, we know a lot of operators in the area. In 2000 we were involved with the fuel price protest in this area and, along with Martin Hall, another local operator, called a meeting to see what could be done about the high prices. More than 400 people turned up and it expanded rapidly. We blockaded the reineries and got the government’s attention, making it realise that truck operators are a force to be reckoned with.” While operators didn’t get everything they wanted, it did lead to a dramatic reduction in vehicle excise duty, which continues today. And, most importantly, operators started to talk to each other. “It led to a new level of trust and co-operation in the area,” says Mike.

The efforts of truck dealers’ sales staff are often overlooked, but the process that led to the delivery of M&M Greene’s new truck and the development of the relationship between the operator and Steve Bastin beats the norm.

Mike explains: “We were committed Foden and ERF users, fans of Cummins engines, and we ran some Dafs. Steve used to call us and eventually won us around. We tried a demonstrator, liked the Mercedes and it went from there. Although it sounds simple enough, the process took a couple of years.

“We were impressed with his persistence and attention to detail. After he sold the irst one he went out of his way to look after us and we had little reason to look elsewhere. The service department does a good job. There are small issues at times, but it gets sorted and Steve does his best for us. The truck is on a ive-year repair and maintenance deal; it’s the best way of ixing costs and looking after our investment. The Actros is a superb machine, it’s early days, but there is a considerable fuel saving over the previous range. We are happy with it.”

Personalised Actros

Often the introduction of a new model range can be a complicated process: manufacturers operate on a worldwide basis and the process takes a lot of coordination. There was some time between the unveiling of the new Actros and the opening of the UK order book.

Steve Bastin says: “We had little to go on to begin with. We knew most of the major options, but a lot of the detailed spec had to be inalised for the UK. The early pricing structure was based on Euro-6 engines, which made it expensive, but most buyers in this market will go for Euro-5, so it took a while to work everything out.

“But we got there in the end and I am pleased with the result. I can’t thank Mike and Mark enough for having such faith in both us and Mercedes-Benz.”

One inal touch was the personalised number plate. The truck was delivered on the morning of Mike’s son Carwyn’s birthday. Not a bad present for a 12-year-old. ■


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