Fuel Oil News March 2019 | Page 14

In Conversation An appetite for tanks When Fuel Oil News visited Allied Storage Tanks, the company had just won its biggest ever order. “With a value of £1.1 million, this contract alone represents six months of bread and butter work, leaving capacity for our regulars,” said managing director, Phil Doughty. “Whilst there were hints that we were in the running, we were delighted when all was confirmed. With additional tank building for water authorities and new customers, work so far is surpassing last year.” In 2005 Phil sold the original company, Allied Tanks & Fabrications Ltd, which 9 years later went into liquidation. In 2014, Phil, who has been in the industry since 1970, took responsibility for the experienced workforce, now redundant, and Margaret Major and Jane Raphael enjoyed a factory tour with Phil Doughty (r) in the above photograph and Kevin White (l) providing comprehensive answers to their many questions 14 Fuel Oil News | March 2019 formed Allied Storage Tanks Ltd. Owning the factory, Phil was able to finance the substantial outlay for both carbon and stainless steel, the necessary materials needed to be bought in advance, and also the labour with much help from a good customer base making prompt and, even occasional early payments, against invoices. “Successful trading over the last 5 years helps to ensure the business stays fluid and cash rich,” added Phil. One of the company’s biggest ever single orders will see two tanks built on the customer’s site with 9 being factory-built at the company’s Darlaston factory situated in the heart of the West Midlands. Most of the company’s tank builds remain as one-offs. In addition to new tank builds, the company undertakes a considerable amount of tank repair and modification work, such as replacing a roof, adding new ladders or constructing a new base. “When jacking up a tank to replace perhaps a base or first course we’re often asked to increase the tank’s capacity by adding another course,” said Phil who notes that a fuel price rise often sees a demand for additional fuel storage. The factory Acquired in 1994, the present factory site offers 120,000 square feet which easily accommodates 16 cranes, including 75 and 50 tonne capacity. The building’s significant height, and also a three-metre deep pit enables tanks of up to 28 metres to be constructed vertically. This substantial building once saw 600 workers daily, now there are 100 with areas within the factory now sub-let to a range of allied trades. Useful revenue for Allied, the company also buys products & services from those renting space which includes cutting services, a steel stockist and a skip manufacturer. “This building may be old, but we love it,” said Phil. “It’s a proper fabrication building, whose early origins also involved the storage of ammunition, and it’s a perfect facility for making tanks.” A skilled workforce Joining Phil in getting the new business off the ground – on 1st February 2014 were Teresa Cornaby (finance), Kevin White (site works) and Ray Nicklin (factory operations). “I can go out on site knowing that all is under control,” said Phil. “I knew the workforce was good – the bulk of our workers are Black Country folk trained in plating and welding; we even have a second generation from some families. “When I contacted old customers to say that I was back in charge, it was great to hear many say ‘wherever you are that’s where we are too.’ All those who said they would stick with me have stuck with me. “Well-established over the last five years, we don’t have to sell ourselves.” However, one aspect that has required more effort to resolve is the fact that Phil has found today’s Black Country youngsters much keener to work at a computer in a warm office rather than weld in a cold factory; so Phil widened his search to Lithuania. The company now employs 18 plater/welders of which 8 are Lithuanian. “Having its own welding school, Lithuania has been a good recruiting ground,” explained Phil who set up welding skills tests at the school. Looking initially for three new welders, 19 turned up for the interview and skills test. Since taking on the first recruits, they in turn have recommended others which led to buying a house for the company’s Lithuanian workers. “It was vital that our working methods and safety standards were fully understood so initially an interpreter was needed to help those who did not speak English,” said Phil who has been impressed by the Lithuanians’ excellent work ethic. “Several now speak good English and can help their co- workers,” said Phil who has also learnt some of the language. “If I could find another 10 plater/welders of their calibre, I would take them straight away!” added Phil. To thank their Lithuanian workers and to meet their families, in late December the company directors joined them for a