EXECUTIVE REPORT
The company has used mystery shopper techniques to improve service levels.
Challenges and changes
Alan Guthrie talks to Andy Martin, MD of Martin Plant Hire, about some of the issues facing Scottish hirers three years after the independence referendum.
Many businesses in Scotland could be forgiven for believing they have faced more than their fair share of challenges in recent times. The 2014 independence referendum caused delay about investment decisions and project starts, followed in turn by a similar situation nationally surrounding the 2015 general election, the Brexit referendum the following year, the downturn in the oil industry and the snap election in May. Indeed, the outcome of having a government with no outright majority has significantly weakened its bargaining power in negotiations over the UK’s departure from the EU in 2019.
Andy Martin, MD of Glasgow-based Martin Plant Hire, says that one significant outcome of Brexit has been the weakness of sterling against the euro and other currencies. “Like other hirers, we have noticed increases in imported equipment costs from a number of suppliers - which also reflects the decline in the UK’s manufacturing base. I appreciate the challenges suppliers face, but hirers’ costs are rising, and so surely this highlights the perennial issue of hire rates. Hirers must be prepared to defend the rates they charge to reflect their overheads and the ervices they are providing.
“Similarly, hirers must be as efficient as possible. We are redeveloping our website to enhance our on-line business. More customers are placing orders out of normal business hours ready for their next job, and we need to ensure the equipment is ready when they need it, perhaps at 7am the next day. The site will be integrated with our Point of Rental/Syrinx software to give real-time information, and will be iPad-friendly. We are also developing a mobile app to make it easy for customers to do business with us.”
has traditionally paid the CITB Levy and received training grants, and we need to ensure that new arrangements meet our industry’s specific needs. And this raises the related issue of recruitment. It is very difficult to find good hire people, and the average age of industry personnel is rising. Businesses need to have programmes in place to train the hirers of tomorrow through solid apprenticeship schemes.”
Maximising opportunities
Andy Martin also highlights the need to train staff to maximise business opportunities and maintain sensible hire rates. “We have used mystery shoppers in the past, which was very illuminating. Most people were very competent, but in one instance an employee insisted we did not offer a particular item, even though it was clearly in our catalogue, while another said that we did not have a floor sander in stock and told the enquirer to go to a competitor nearby! I shared the findings by embarrassing a number of managers and, the following month, our revenues increased by 5%.”
Martin Plant Hire has 12 depots throughout Scotland.
Other current challenges include the continuing volatility of the oil and gas industry, again highlighting the need to develop other markets. “We have seen the completion of several significant projects recently, such as the Queensferry Crossing and major
Another challenge is the on-going issue of training. “There remains uncertainty regarding the future role of the CITB following the introduction of the Apprenticeship Levy applying to all businesses of a certain size, not just those involved in construction. Martin Plant Hire
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improvement to the M74 and M8 motorways, meaning there could be a lot of second-hand equipment appearing on the market. However, there may be other opportunities. Major parts of the Scottish motorway network are still dual carriageways that create bottlenecks, and business groups could lobby for further improvements. In addition, several newly built hospitals do not seem to have sufficient capacity as they were originally planned decades ago, and so more will be needed. And why is the planned HS2 high-speed railway ending at Manchester? It should continue northwards and over the Border. All too often, Scotland seems to lose out, and Scottish businesses need to make their voice heard.”
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www.martinplanthire.co.uk
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