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BOWLING THEM OVER
Page 39
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How diversification is cushioning Roy Bowles against any downturn in air freight Roy Bowles is a long-established player in this sector and director Stephen Bowles also sits on the Road Haulage Association committee. "Aviation freight is a premium product," he says. "We're the first to feel the recession. There is a drop in work and it goes across the board, both small and large consignments.
"Perishables are down and the more borderline forwarders have been hit hard. May was a bad time and commercial managers at airlines urge caution. We're not looking forward to the new year as that's when companies fail as they can't pay their bills."
Bowles believes margins have dropped in this sector over the past 15 years. He has countered this by removing cost through "optimising use of the fleet and focusing on certain products".
Diversification has led to the firm providing a Customs-approved import (EATS) and export (DEP) band, self-drive vehicle hire, warehousing and specialist transport serving the entertainment industry. Bowles have also increased its perishable traffic as British agent for Swedish-owned Envirotainer, a temperaturecontrolled air freight service similar to the use of ISO containers on ships.
Another area of expansion has been aviation security training. In addition to its own staff, the firm trains other drivers in all aspects of security. This, says Bowles, raises standards and reassures clients their valuable goods are being securely handled.
Further cushioning against economic woe comes from founder Roy Bowles' canny decision after the firm was set up in the 1950s to acquire a property portfolio — the company owns the freehold of its premises in the astronomically expensive airport hinterland.
The vehicles in Bowles' 80-strong fleet, mainly MAN for HGVs to take advantage of EGR, are often bought pre-owned. The fleet has become smaller over the years, explains Bowles, partly because of effective usage and improvement in the quality of product and maintenance, ensuring breakdowns are rare and cutting the need for spare trucks.
"We are a low-mileage operation," says Bowles. "I we can't make a go of it in the South-East we might as well pack up."
This local focus, combined with warehousing capacity, enables the firm to offer a consolidation and final delivery service for other hauliers running into either the airport or London.
"Location," says Bowles, "is important to us." So, it appears, are experience and diverse customer portfolios. "It's going lobe a vicious year, survival of the fittest," he predicts.