On the rack but ready to react
June 1st 2009

Despite the downturn, May's SHEDA AGM remained relatively upbeat, with members urged to ensure any cutbacks do not affect their ability to react when the upturn arrives. Brendan Coyne reports

"The last 12 months have been eventful to say the least: my presidency coincided with the largest downturn in recent history," quipped Mike Lynch, SHEDA president, at the Storage and Handling Equipment Distributors' Association AGM in May.

But that's not to say Lynch hasn't been busy. Prompted by a supplier's enquiry as to how the industry is fairing, Lynch organised a straightforward questionnaire and received responses from "a substantial number of the total SHEDA membership".

Unsurprisingly, the results show that comparing October 2008 to March 2009 with the six month period April 2008 to September 2008, the majority of members (58 per cent) had seen business decrease. However, that could also be seen as relatively positive – 42 per cent claimed they had seen invoiced sales remain constant or increase. Tellingly, however, was the fact that over a third of respondees had cut jobs: Sixty six per cent remained constant; nobody had increased their workforce. In line with most economists' predictions, most thought business would worsen over the coming 12 months.

While hardly over-confident, the results of the survey were not as bad as some at the AGM had anticipated. With SEMA representatives also present at the meeting, Lynch noted that suppliers seem "significantly more upbeat than distributors," and that it would be interesting to repeat the survey with the manufacturers' association. Given that lower distributor sales also affect suppliers, Lynch also asked whether manufacturers could be more tolerant, mooting the possibility of extended credit terms.

Given the current climate, Lynch stressed the need for members to consolidate and prepare for the upturn. "We need to ensure that any cutbacks do not affect our ability to react when it comes," he said. Tying that in with issue of corporate liability, Lynch noted the "frightening" number of recent prosecutions. "We are particularly vulnerable because of the nature of what we do, which is why we stress the importance of selling new equipment rather than be coerced into selling second hand kit." He also warned members that 7,000 more end frames would shortly be coming onto the market from a stripped warehouse in Bedford. With the recession putting more firms out of business, and therefore more second hand equipment on the market, Lynch said distributors would continue to feel the effects.

Picking up the thread of liability, Paul Cregan, of Novae Insurance Company, then pitched his firm's policies, in a presentation entitled 'Manslaughter and homicide: Your personal exposure as a company director.' The presentation covered the legislation affecting directors, namely Section 37(1) of the 1974 Health and Safety at Work Act, which states that directors can be disqualified for up to 15 years, and Personal Gross Negligence Manslaughter which is investigated by police, prosecuted through the CPS and can result in potential prison sentences.

"The vast majority of prosecutions are SMEs because it is easy to find out who is ultimately responsible as apposed to say, rail crashes," said Cregan. "Within bigger corporates it is impossible to identify a single person as responsible." He then explained what Novae's D&O policy would cover should any members ever need to call upon it.

Finishing on a positive note, the SHEDA award winners we're then presented with their plaques to mark a year of excellence, as voted for by SHEDA members. Top slot went to Trade-only storage supplier, Moresecure, which has placed in the awards top three for three consecutive years. Troax UK took second place while last year's winners, Redirack, again made a podium finish. The SHEDA Shield of Honour, for the most improved services over the year, was won by Quigley Metal Products of Stourbridge.

Finishing the event with a joke about an Antipodean walking into a bar, Lynch then handed over the reigns to president elect, David Camm – a fortunately good humoured Australian who resisted the temptation to tell all those laughing to rack off. But then he was outnumbered… See the newly-improved website at www.sheda.org.uk for more details.

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