Lex branches out

by Fiona Kingston



Current annual growth of around 20 per cent in the UK access market has led Lex Harvey, a specialist in the contract hire and service of materials handling equipment, to set up a new business.

Lex Access, financed by Lex Harvey's parent company Lex Service, opened its order books on 1 July for customers interested in the short- and long-term hire of self-propelled booms and hydraulic platforms.

For the moment the operation is being run as a separate entity, from Lex Harvey's Hinckley depot, by a team of four including depot manager Julian Shaw.

By the end of the year Lex Access, initially targeted at customers in the Midlands, is set to have a fleet comprising 100 units. So far all of the company's new equipment has been bought from Upright. Future purchases will depend on market demand.

Mike Molesworth, current md of Lex Harvey and new md of Lex Access, is confident of good business opportunities in the access market, after recent market research revealed year-on-year growth of around 20 per cent since 1990. He told CJ: "In two years we hope to reach a turnover of around £7 million."

Lex's aims for the new business are ambitious, but Lex Access's arrival in the market has the added advantage of Lex Harvey's existing administrative resources.

Warwickshire-based Lex Harvey, an independent firm with an annual turnover of £72 million has in its inventory; a 16 depot network; 500 mobile engineers; a fleet holding of 10,000 items of plant (90 per cent forklift trucks, the rest general operated plant); maintenance contracts for a further 13,000 items of equipment; and a hire operation in France.

According to Molesworth: "Lex Access will be utilising the accounting, engineering, distribution and credit resources of Lex Harvey." The advantage of this, he added is that; "The new business will have low overheads, a flexible team of engineers, and an unmatched level of service back-up."

Looking ahead he said: "Once we've got the first operation up and running in Hinckley, there's no reason why we can't roll out across the rest of the country very quickly."

Despite Lex's confidence in its March decision to enter the access market, Molesworth admitted that the task would be challenging. "The principal problem will be understanding the differences in the access market compared with our existing market, and making sure we've got the right equipment. That's the thing we've got to learn fast."

Pat Campbell joins the company on 1 August as general manager.

l Lex Harvey signed a deal in 1996 to handle telehandler manufacturer Matbro's on-site warranty and maintenance work throughout the UK. It cut its link with the debt ridden business in the midst of its troubles, and now handles customers' maintenance problems direct.