HITACHI CONSTRUCTION MACHINERY

Kent – or the Garden of England as it is otherwise known – is recognised as the warmest county in the UK and home to the Channel Tunnel and port of Dover. Its close proximity and easy access to mainland Europe mean that it is an ideal location for commerce and industry. We visited the Ashford-based GSE Group to establish why its rental division has enjoyed continued growth, and how its relationship with Hitachi construction machinery began.

Groundwork South East (GSE) was established in 1986 by founder and current Chairman Darrell Healey. In the early days, the company supplied labour and construction equipment – including Hitachi excavators – to a small number of local customers. As the business expanded, the company’s name was changed to GSE Group and its groundwork division began trading as GSE Building and Civil Engineering.

GSE Design and Build was then formed to optimise the design and engineering aspects of industrial, retail and commercial construction projects. The continued growth of GSE Group and its increasing requirement for construction equipment led to the inception of its rental division, GSE Plant Limited in 1999, and GSE Haulage in 2003.

GSE Plant Limited was established by Managing Director Mike Mackman. It immediately bought the plant owned by GSE Group, which helped it to accumulate an annual turnover of £400,000 through internal contracts. Mike then selected an experienced team to help expand its portfolio of external customers.

The company now serves the building and construction industries in the south-east of England with one of the most modern and well-maintained plant hire fleets in the region. Mike’s aim is to focus on projects located within a 50-mile radius of the company’s two depots so that it can provide first-class service and support.

GSE Plant Limited currently has an annual turnover of £5.5million and only 20 per cent of this figure is now generated within the GSE Group. This contributes to approximately ten per cent of the parent company’s annual turnover.

Mike had gained a wealth of plant hire experience before joining GSE. His likeable manner, honest approach and industry knowledge have rewarded him with an enviable reputation and an ever-expanding customer base. “My career history stems back to August 1959 when I joined a company known as Kent Plant Hire,” he explains.

“I reached the position of General Manager before buying my own business, Murston Plant, in 1977. At this stage, I even supplied GSE with some of its machines! When I sold it and joined GSE in September 1999, I would never have guessed that my new company would buy the old one as part of its expansion programme. Some of the operators – who I had previously employed – even ended up working with me again!”

GSE Plant continues to go from strength-to-strength despite the competitive nature of the business. It now operates from purpose-built depots in Medway Towns and GSE Group’s base in Ashford, and has a loyal team which strives to provide complete customer satisfaction.

“England has several large rental companies, which operate on a national basis,” continues Mike. “Each region also has a number of smaller suppliers who have to compete with their prices. I genuinely believe that the high level of service delivered to our customers will help us achieve this.

“We have dedicated and enthusiastic office staff, experienced fitters and over 60 trained operators. We are open 12 hours a day and our mobile phones are always switched on.

“Machines can be hired with or without an operator. This depends on the customer and the nature of the application, although we notice that less damage is inflicted on the machines if we supply the complete package! The fact that we have a group of experienced operators is also beneficial. Many companies no longer employ their own operators due to increasingly stringent training guidelines.

“In addition to the relationships we have with existing customers, we also place great emphasis on establishing new contacts. However, the quality of our machinery is also a reason why we have enjoyed such a high level
of success.”

Ninety per cent of GSE Plant’s fleet of 150 excavators have been supplied by HM Plant, the UK distributor of Hitachi construction machinery. The plan is to replace other manufacturers’ machines with new Hitachi models. GSE’s fleet is all standard, but can be fitted with different attachments if required. It also has a fleet of dumpers, rollers, telehandlers and mobile-tracked concrete crushers.

Mike’s links with Hitachi date back to before his days at GSE Plant. “I have known HM Plant’s David Hearne [Operations Director] and John Jones [Chairman] for a long time,” he continues. “David has always managed the requirements of GSE Plant. We have established a good understanding and a high level of respect for each other.”

The first order placed by GSE Plant for Hitachi excavators was worth £1million and it has continued to buy from HM Plant ever since. The latest deal was for another 30 new machines worth £1.5million. This included mini-, mid-range and two new wheeled excavators. Its fleet now includes a variety of Hitachi Zaxis models ranging from the ZX30 to the ZX280LC-3.

“Competition is growing for excavator manufacturers,” says Mike. “However, I firmly believe that the advanced technology offered by Hitachi makes it difficult to beat and will continue to give it the edge in the immediate future.

“The Zaxis range is extremely reliable and certain models are often requested by customers. Our operators also find them easy to use, which has a positive effect on the quality of service that we provide. This has also helped us to expand.

“Finally, we receive a high residual value for Hitachi machines, which allows us to invest more in new products when the time comes for them to be replaced. This used to be every five years, but enhanced reliability means that we now replace them every six years. This is good news for us!”

The company currently supplies a number of major contractors on a regular basis, including Costains, Breheny, Skanska and Ringways. It is also hires equipment to the utility companies, small building contractors and the general public.

One example of a satisfied customer is Breheny. The contractor has been working with GSE Plant for approximately seven years. It is based in Suffolk and originally only had one contract in Kent. The success of that project has led to further jobs in the county and it is about to open an office close to GSE Group.

“We have worked closely with Mike and Plant Manager Brendan Minter for a long time,” explains Breheny Site Manager Steve Clarke. “GSE Plant offers a quality service and I can always contact them if we need more machines or advice. The fact that it operates mostly new Hitachi Zaxis excavators also makes a big difference and we have never experienced any problems. They are extremely reliable, which is important when we have deadlines to meet.

“We are working on a huge regeneration project on a housing estate in Ashford. This involves preparing the ground for new accommodation and we are also removing all driveways and pavements to make way for block paving. It would not be as manageable without GSE Plant’s Hitachi fleet support and the knowledge that we can call on them if required.”

It appears that in the world of plant hire, the strength of relationships can be as important as the quality of equipment supplied. Mike’s commitment to the Hitachi brand, association with HM Plant and customer focus mean that GSE Plant is in an enviable position. GSE Group and the construction industry in the Garden of England look set to enjoy continued growth for the foreseeable future.