A Message From ROD BENHAM
Enquiry levels remain good but we are experiencing a very quiet second quarter although in this continuing period of uncertainty decision making may be on hold pending the outcome of this Thursday’s General Election. However, on page three I referred to the change at TCS over the 20 years since acquisition yet my current thought process is firmly fixed on 5 years in the future when I can assure you that the business will be different from today, because it has to be different.
Very early on in my career in rental I learnt to appreciate that ‘rental can be the right choice at any given time given the prevailing business conditions’. While we have benefitted from an extended period of uncertainty due to the power of the major supermarkets over their suppliers, our customers, it is currently the uncertainty over post-Brexit which means that time is now, but it will not last. Over the next 5 years, as the country moves on from Brexit we will see more certainty, whether good or bad, which will provide the catalyst for increase in investment which I firmly believe will encompass robotics as;
1. After a stagnant 20 years since robotics changed the car industry advances in robotics will drive a new phase.
2. Talking to insiders within the robotics sector I’m advised that the food sector is currently the fastest growing market, having been next to nothing 5 years ago.
3. The fear of availability of labour resulting from Brexit and new immigration rules.
4. The rising cost of labour meeting a reduction in the costs of robotics, very much a growth sector where the laws of supply and demand will prevail.
Does our current offering, the nature of which requires double handling, fit with a process flow of automation / robotics? Yes there will always be a market, product segregation etc. but growth is, I believe, very unlikely unless we act now as we can allow ourselves to be in a position where we are reacting to what has happened.
Current business strategy is therefore,
•Maximising new project business opportunities now to guarantee long term revenue streams.
•Customer Retention: Build relationships with and give our customers no reason to off-hire.
•Product Market Development: This encompasses New Products such as Clean Rooms, Product Enhancements like the ATEX certified, the Eco-Blast etc. plus Product Redesign to suit a changing marketplace.
The three together will take us to the next phase in the history of TCS and I look forward to us doing it ‘as a team’.
Rod