the PeoPle - OPERC - Off-highway Plant and Equipment Research ...

SPECIAL REPORT
hirer expectations at whs
from agricultural engineer
to plant hirer
The story of the self-made engineer
who moved into plant hire is a familiar
one but with James it is one with a
slight twist.
Coming from a rural part of the country,
James left school at the age of 16
to study a four year City and Guilds
qualification in agricultural engineering
at Evesham College whilst working for
an independent agricultural engineering
company. However, he soon decided
that agricultural engineering was not for
him and began work for a local tool hire
company in Evesham, namely Evesham
Hire Centre, who later got bought out by
Brandon Tool Hire.
Mr James Clutterbuck, Managing
Director, WHC Hire Service
22
April 2011
James worked with the hire company
for several years acting as a service
engineer – but as he recalled: “No
one did one job though, the phones
get busy and you answer them,
dealing with customers one minute
over a hire counter and working on
the hire fleet as an engineer the
next. It was a great job because it
gave me all round experience, skill
and knowledge of the hire industry
and how it worked.”
After 8 years James was
approached by Worcester Tools
and Fixings (WTF) which had a hire
department and needed a manager.
James accepted the position but
after three years of loyal service
noticed that there was a distinct
lack of investment in tools and
equipment and it was apparent that
the company’s heart was in sales
not hire.
James said: “WTF never grasped the
concept of hire and how it works so
I approached the MD and told him
that I couldn’t continue because the
business was drifting aimlessly and
also there was a lack of investment. I
was astonished that the MD decided
to close hire down but amazed
when he agreed for me to buy the
kit off him. So on 2nd January 1997,
Worcester Hire Services opened
its doors and we have been trading
ever since.”
At PEP, we have often looked
to the large multinational, or
at least the large national
multi-unit hire company, for
inspiration whether that be in
terms of safety, the shape of
the market or the very latest
product innovation or invention.
They do say that change is
as good as a rest, so in this
issue we focus upon WHC Hire
Services (based in Bath Road,
Worcester) and the modest,
down-to-earth man behind
the company, 45 year old Mr
James Clutterbuck.
Secret of success
“everyone’s talking about it!”
When asked what he thought was the secret
to his success, James replied: “It’s really
about knowing your industry and reinvesting
into the business. There are no real short
cuts – reinvestment is key in this industry.”
He continued: “The government needs to
look at investment as for small independent
companies like mine, or large group
ventures, they have taken away some
of opportunities we had to be able to
reinvest into the business because of the
changes made to capital allowances and
annual investment allowance. If you’re
not getting the corporation tax through me
‘the hire company’, then you’ll be getting
it from a dealer or an original equipment
manufacturer (OEM). It is very difficult at
present and of course come next year,
capital allowance tax changes again
and that will have a serious effect on the
performance of business. We’re all looking
to invest and many companies have held
onto old equipment to get a bit more out of
it, but come the upturn, they may want to
reinvest in new machines and may not be
able to.”
James explained: “What you’re finding is
that OEMs and other suppliers of plant
and machinery are trying to push more the
operating lease which is more tax efficient
but it’s a fixed cost and you don’t have any
assets - you have a cost and it sits in the
wrong place on the balance sheet. This
approach is alien to my business because