The key to success

Keyway, the plant hire, transport, demolition and bulk excavation business operated by brothers Eamonn and Brian McGurk from Barnwood, Gloucester, has enjoyed an almost meteoric rise to plant stardom.
Elder brother Eamonn McGurk started the ball rolling when he finished school and joined his father's owner-operator business in 1985 with a six-wheeled Leyland tipper and a MkII JCB 3C.
Six years later, younger brother Brian joined the firm, and the two men relaunched the business as Keyway, with ambitious plans for growth and change.
Today's operation centres on a 200-machine hire fleet led by almost 150 excavators and backed up with ADTs, dozers, loading shovels, crushers and screens. In support are 50 trucks, which are predominantly eight-wheel tippers. However, skip lorries, hook-lifts and low-loaders for machinery transport are also included.
With an annual spend of more than £1m on diesel fuel to keep trucks and equipment on the go, the firm has recently added three local fuel stations to its business portfolio. It is part of a one-stop shop strategy that drives the brothers forward, as they search for the next bolt-on component for the business-to-business needs of the construction industry.
"We would like to achieve single-supplier status with many customers, but to do that, we need to add many more facets to our business," says Eamonn.
Comprehensive coverage
In addition to its base in Gloucester, the firm also has depots in Bristol and Swindon, giving the company comprehensive coverage of an operational area that extends beyond a 50-mile radius from its base. There are about 200 employees involved in the firm, which enjoys an annual turnover in excess of £18m.
"We were brought up on a staple diet of spanners, diggers and lorries," says Eamonn. "And when it's in your blood, it seems only natural that we should turn such an interest into something far more positive."
Part of the firm's success is down to a positive attitude towards customer service, which is something the brothers place firmly at the top of their list of priorities. "Customers don't want excuses," explains Brian. "We make an effort to provide exactly what is wanted for the job, and this can include swapping machines for customers whose needs vary throughout a long-term hire contract."
Shifting business focus
Over the years the company has gradually shifted its business focus from that of a reactive hire business providing odd machines here and there, to a sophisticated solutions provider offering full machine packages to customers.
"If customers come to us with a particular problem, we are happy to work out a solution because we are now a problem-solving business, and not just a straight-forward hirer of diggers," says Eamonn. "Being flexible and versatile has helped us to expand."
It is a philosophy that can also involve making alterations to kit too. "If the job is cost-effective, we'll alter machine specifications to suit a customer," he says, citing the recent conversion of a Kobelco SK135 SRLC carried out for a waste recycling client.
"We've raised the cab height so the operator can see over the top of high capacity hook-lift bins where he's working," says Brian. "And when the machine comes back off the contract, we can remove the extensions and revert the machine to its original dimensions."
The firm has also bought knuckle-boomed excavators as part of its problem solving approach. "As long as the contract is viable, we'll find our customers a solution," he adds.
Keyway's excavator fleet covers the 3t to 35t sector, though the lion's share is a mix of 8t and 13t. Fleet content is 90% Kobelco, with the remainder a mix of early Fiat-Hitachi, JCB and Komatsu models, with machine usage above 80%.
"We started bringing second-hand grey machines in from Japan long before the import situation became a hot potato in the UK," he says. "We had confidence in grey products and our customers who had tried them wanted nothing else. The hydraulic systems and performance were far superior to anything else on the market."
At the time, Keyway was expanding its business, and the grey market was an easy and cost effective route to fleet expansion. But Brian says that supply problems took over and you could no longer guarantee the age, spec and condition of what might arrive.
"We refocused our plans and decided that every subsequent machine would be new, bought through local dealer Molson Holdings," he says. "Spec would extend to a quick-hitch, full set of buckets, plastic mirrors, radios without removable fronts and large decals on the boom."
The fleet became easier to manage through standardisation, and, more importantly Brian says, it created the right image. Machine replacement policy now extends from one to four years, with a ceiling of 5,000 hours.
"The 8t and 13t Kobelcos are still superior to anything else on the market, though I think Hitachi's Zaxis models could give them a run for their money," he says. "But beyond these weights, all others seem to be on a par in our experience."
Eamonn says: "We're not afraid to try an excavator or other piece of kit for up to two years and assess its running costs alongside others, before we think about making major fleet purchases."
He adds that Kobelco parts prices are expensive and Keyway fears it could lose customers over machine damage. Such issues are prompting the firm to look closely at other makes of machine.
Cost of repairs
"While our customers accept that they sometimes damage kit and accidents do happen, they cough at the costs when we present them with a bill," he says. "Kobelco body panels and window panes are too expensive compared with other machines in the fleet."
The firm has taken a similar view with its truck fleet. "We've worked our way up the brand ladder to get the best trucks on our fleet," says Brian. "And despite being strong Scania users, we are gradually moving to Volvo."
Many of the firm's latest Scania trucks were bought with R&M contracts that appeared to make operational and financial sense. But the reality has been somewhat different. "Dealing with Scania involved long, drawn-out discussions over warranty claims, which was affecting our operations," says Brian. "We don't need hassle and deliberation; we need immediate solutions, just like our customers do."
Brian believes some of Scania's problems were a direct result of the Swedish maker's recent success, as the local truck dealer struggled to cope with the workload. "It's a shame really, because the product has worked well and we still like them, but they're no longer the way forward for Keyway," he says.
Keyway believes its Volvo FMs and the support it has received, has resulted in the McGurks placing an order for 10 more Volvo trucks. And as part of its modern, high-quality image, the company is planning to replace its trucks every three years, rather than running them longer.
"The image of a modern fleet is good for the business and it helps to keep drivers happy too," he says, acknowledging that Keyway is a team effort from top to bottom. "Hard work and loyalty from our employees has contributed greatly to our success."
Having reached such an established and perhaps enviable position, many bosses would be happy to maintain their operation on an even keel. But the McGurk brothers refuse to stand still. "Yes, we're happy with utilisation levels and we're happy with our rates, too," says Eamonn. "But being happy with the status quo doesn't mean we're going to get complacent, we're still pushing forward, trying to better ourselves and put more distance between us and our competitors."
He sees the use of an "internal policeman" as an essential tool if the business is to reach peak performance. "Every firm needs someone looking over their shoulder at all levels of business operation," he says. "It's rather like the mystery shopper syndrome, but done to ensure we continue to operate properly, to push quality and reinforce health and safety legislation."
It is clear that both men are committed to providing a first-class, professional service to their customers. "Hirers need to understand their
markets, while providing a high-quality approach," Eamonn says. "It's where the industry needs to go."<F0A8>