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4‘ riddle, wrapped in a mystery
inside an enigma" was how Winston Churchill summed up Russia. He might have been talking about Gray & Adams.
How else to describe a company that's the runaway leader in the controlled temperature trailer market—but steadfastly refuses to shout about it? Or one that invested £2.5m in new equipment during one of the toughest recessions on record— then built its own panel saw to save money? Or a company whose accounts are the envy of the reefer business—but pays its suppliers when they want?
Cash-rich._ meticulous._ and even, heaven forbid, arrogant?
Certainly when it comes to investing in its 12-acre site there's an individual approach.
Three years ago it spent £2.5m on improved panel bonding tables but when a supplier quoted £150,000 for a new panel saw G&A reckoned it was too steep and built its own—for a fraction of the price. "It's not scrimping, it's being sensible," says Peter Gray. "It's all about making your money work."
The same cost-conscious philosophy was employed when it came to moving equipment into a new building. Rather than interrupt the normal workflow it moved in over the Christmas and New Year break. "Then the guys got their break after the New Year," says Gray. And production was unaffected.
G&A makes its money work, especially when dealing with suppliers.
Whereas other vehicle manufacturers extend their credit terms from 30, to 60 and even 90 days, G&A pays its suppliers straight away. "That way," says Gray, "we enjoy a little more service."
It certainly seems to pay off. When CM
visited Fraserburgh a trailer load of Michelin tyres (currently like hen's teeth for other manufacturers) was just being unloaded.
While much of the assembly operation at Fraserburgh is labour intensive, according to Gray that's a benefit. "We're flexible in ideas and thoughts so if it's possible to build something, we'll build it. The more you automate the less flexible you become. We've looked at robots but we'd then need to build a standard product. For us there is no standard, we don't operate that way."
G&A also has a production team that clearly delivers the goods. "If we had a lazy bunch of buggers we'd maybe have to get a load of computers. But what we do have is a very good workforce," says Gray.
Despite all its attempts to stay out of the spotlight people talk about Gray & Adams and a legion of myths surround it.
Industry pundits say its reputation is impressive, built on success in the marketplace and canny business acumen.
All that cuts little ice at Fraserburgh, least of all with sales director Peter Gray: "We're not arrogant, or laid back. We don't take the view that the products are fine and that.'s it but if people talk what can you do about it?
"It's difficult to stop the chit-chat, just as long as it's positive!"
Quality
So how good is Gray & Adams? According to its rivals, very good. "They may not make a song or dance about their product," says Lamberet's UK manager Keith Howard, "but there's no questioning their quality You can't knock that, or the fact they're very profitable.
"What they build is functional, strong and you've got to admire what they do."
That respect is echoed by one of its greatest threats, Schmitz Cargobull. Its UK marketing manager Liam 01liff says G&A is regarded as being a top quality manufacturer and the firm's been around a long time. "However, all market leaders are there to be shot at and the reefer market situation is changing in our favour." He adds: "There's a general view that G&A have been sitting on top for so long they've become complacent and that's to our benefit."
How can Gray & Adams maintain its continued success? Whoever you talk to at Fraserburgh one word invariably crops up— dedication. Co-founder Jim Gray uses it even when he refers to the competition.
"If you look at people like Pacton or Schmitz they're aggressive yes, but very dedicated all the time. We're successful because we're dedicated to the job."
That dedication extends to keeping the
company's financial performance well away from prying eyes. When CM asked what G&Ns current return on revenue was Jim Gray professed not to know, adding: "It doesn't worry me that I don't know what it is. All I know is that I know our figures and we're reasonably happy with them."
That last cryptic sentence probably says more about G&.A's financial strength than any revenue calculation ever can.
If G&A is diffident about its profits, it's equally modest about its sales success, preferring not to divulge its annual figures. Ironically, getting a true picture of any trailer maker's sales has never been easy. Like all trailers, reefers aren't subject to initial chassis registration so market shares are based on guestimates—often from your rivals.
In 1993, according to Lamberet's Howard, the market finished at around 1,600 trailers "plus or minus 100 and G&A were on top with around 600, Schmitz came second with around 500 and Lamberet was third with 300."
There was quite a sales rush at the end of last year and reefer sales rose to between 1,800 and 1,900, although some industry observers claim the final figure could be as high as 2,000. The top three positions have stayed the same so given that G&A's own market share tends to fluctuate in line with total market volume it's likely to have sold more trailers in '94.
Whatever the numbers Peter Gray says: "We're happy with the production figures we've got. We're looking for a proportion of natural growth. We don't want to be number one in the world. If we can maintain our margin and keep our customers satisfied we'll be happy."
Other market leaders make a song and dance about their success, why doesn't G&A? Peter Gray sees nothing unusual in his company's reluctance to step into the limelight: "Look at Marks & Spencer—they don't shout about their success from the rooftops and they're not going backwards."
It makes sense for Gray to use M&S as an example; the high street giant's stores are constantly supplied with frozen and chilled goods carried in G&A trailers run by dozens of blue-chip hauliers such as ROC.
Mention Gray & Adams to the average reefer buyer and the words "premium product" tend to crop up. Major G&A buyer Graham Eames from Hargrave International reckons: "Their standard trailer's the best on the market, that's all there is to it."
Another word synonymous with G&A is price although according to co-founder Jim Adams. talk of G&A trailers being expensive is not borne in real-life: "The pi-ice premium is much exaggerated, there's not much in it."
Peter Gray says: "It's unfair. It's probably because we're the market leader and when you're the market leader you're not selling crap. The market leader and high quality product go together. A lot of people get blinded with cost," he says.
As for building a lower-spec "budget" reefer, Peter Gray is dubious. "ln any case there's not much material that you can take out to get a cost difference."
G&A could switch to a three-element panel body rather than its standard fiveelement design but Peter Gray remains sceptical, saying it doesn't have the same quality or durability of life. "There would be a substantial difference in price but you need to think not of the bigger price today but the whole life costs of the vehicle."
G&A's trailer chassis is produced using a five "module.' design. They're pre-assembled then bought together for final welding.
There are several trailer designs, stepped or flat floored with up to 2.6m inner height and even 2.8m when used with shallow couplings hut there are many variations on the themes.
Dual system
Among the more interesting was BOC's Freshtainer which is still being evaluated, the dual-system trailer with its diesel nosemount and liquid nitrogen underinount units plus some recent multi-temperature trailers central dividers. Kwiksave has several with fixed longitudinal walls while others made for Holroyd Meek have moving lateral partitions which give it greater flexibility on temperature and loading patterns.
Another development is the dual compartment 4.0m reefer built for Grampian Country Foods fitted with Carrier's new generation Multitemp system. With its single condensor section and twin evaporators the system supplies +20°C to -20°C on either side of the moving bulkhead and has independent defrosts.
Like most of the G&A reefers, it has a useful remote rear bumper. In the event of bumps when reverse docking it transfers shock loads into the chassis rather than through the body thus cutting down on repair costs.
There's increasing interest in the use of rear steer axles too, particularly for town distribution work.
Whatever the product or customer, G&A remains a family business above all else.
The two men who started it in 1957—Jim Adams and Jim Gray—still head the Fraserburgh operation.
Peter Gray handles sales, assisted by Stewart Massie; Louis Gray looks after design and production; his son Louis jnr runs general repairs and refurbishment, z while James Gray jnr is in charge of quality control and factory production. Last but not least Jim Adams jnr has taken on responsibility for fridges and tail-lifts.
So what keeps people coming back to A G&A? For Peter Gray the answer is simple. p. "If you give the customer total dedication 2 and satisfaction and look after him 101% you'll keep him." And G&A clearly keeps its customers.
G&A's success has meant it hasn't been short of suitors during its 38 years in business. According to Peter Gray there have been "several offers from time to time" but then he looks down and shakes his head: "But no no "
After that, words seems unnecessary. LI by Brian Weatherley and Bryan Jarvis