Tallent scout
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Last year, construction transport show Tip-ex was all about moving floor products as manufacturers diversified. This year it returns to its roots
Words: Kevin Swallow / Images: Graham Richardson
THERE ARE SIGNS from the latest crop of Society of Motor Manufacturers and Traders (SMMT) registrations that the 8x4 tipper market is bouncing back. Considering things had hit rock bottom through 2009 and 2010, perhaps ‘bouncing back’ is overstating it a little – but things are looking up, nonetheless.
Between 2006 and 2008, 8x4 registrations held irm, but by 2010 they had slumped to less than 1,500 units.
The tail end of last year saw a major spike in sales, and this year many truck manufacturers and body builders believe the 8x4 market during 2011.
Through the economic downturn and drying up of construction projects, manufacturers looked to diversify in order to keep busy, turning to moving-loor trailers, blowers and ejector trailers.
David Tallent, director of G&T Events and organiser of construction transport show Tip-ex, says last year’s show saw the dominant moving-loor players from mainland Europe – Legras, Knapen and STAS – competing with new products from UK-based businesses such as the UK agent for Polski Allen Munro Commercials (now in administration), and manufacturers Weightlifter and Wilcox.
Although product development is always welcome, moving into these additional markets was not without problems.
The recycling and waste markets were not insulated against the recession, Tallent says, but the strength of the Euro has meant the UK manufacturers have been able to take market share away from the Europeans, who traditionally dominate moving-loor markets.
But things have reverted to type, and tipper body and trailer builders reported a rebound in orders through the past three months.
“One in particular has seen bodies, always the largest part of its business, and trailers swap in terms of the higher percentage of sales,” he says.
“The tipper market has been fairly consistent for some time with semi-trailer sales at 1,000 -1,300 units a year. Most of the builders are specialists in that market, and the bigger companies have been moving out to concentrate on other sectors,” which has helped, Tallent adds.
For such a niche part of the road transport industry it has long been argued that market consolidation, which would help improve economy of scale by increasing bargaining power and reducing overheads, could help when times are tough.
Failure to dominate
But Tallent rejects this notion. An attempt by the former owners of Fruehauf to dominate the construction market failed, ending in another administration.
He says no one was keen to get together, although consolidation has come about in a smaller form as manu facturers and product suppliers have gone bust. “Manufacturers all seem to have their own specialist markets, some territorially based with their own loyal customer base. Markets tend to ind their own equilibrium,” he says.
“The market would be too concerned about one company dominating and others would have illed the void in terms of choice.”
Market share
Clearly the size of a manufacturer business has to correlate with its turnover and market share, and Tallent believes smaller businesses are more adaptable and leeter of foot than the bigger companies when it comes to coping with a recession.
Considering last year brought an end to many businesses linked to construction, Tip-ex 2010 was able to relect the resilience of the market, he says.
“The show ended up with 60 exhibitors, which was 75% of the total exhibitors during the good year in 2008,” he says, “and with 2,200 visitors it matched the 2008 show.
“As organisers, we thought Tip-ex 2010 would work, we couldn’t afford it not to work, but it was hard work – we were very gratiied by the number of exhibitors.
“There were reports that some exhibitors had gained business out of the show, but many exhibited to demonstrate that they were still here, developing new products and that they still believed in the market and are in it for the long term.” ■