Powering ahead

In little more than a decade LCH Generators has become one of the UK's leading equipment rental specialists. Martin Cooper finds out how it all happened.
Brothers John and James Pirrie had no idea in the early 1980s that their little enterprise of buying and selling used diesel engines would evolve into one of the UK's leading equipment rental businesses. From a part-time hobby, the brothers' commercial instincts have expanded the company to the point where today it is unrecognisable.
LCH Generators is a nationwide supplier of gen-sets with five UK depots and a rental fleet of more than 2,000 units. A range of services demanded when hiring a generator are also provided by the company, from specification through to delivery, maintenance and fuel management.

Family business
Throughout the years, the brothers have maintained hands-on control of the company, with John acting as managing director and James designated financial director. The siblings say the LCH generator hire fleet is probably the largest in the UK, if not Europe. It comprises sets from 10kVA to the largest 1,260kVA units, and includes ancillary equipment such as bulk fuel tanks, distribution boards and transformers.
Growth at LCH was initially steady and unspectacular, but the past five years have been hectic and this has required a change of mind-set, says James.
"It started when we set up our second depot, in Coventry, in 1998. Suddenly you're managing a business from a distance instead of having everything in one location."
However, he says the real cultural change came with the opening of LCH's third depot, in London. "For some reason, this changed the whole company set-up," James says.
The company, hitherto run by a tight-knit group of people, had to recruit a lot more staff. "It can be difficult to entrust the running of an important new venture to somebody you might have met only two or three times," stresses James.
He is, however, quick to point out that LCH now has the right staff in place and growth has not slowed down. In February, its fifth depot, in Wigan, was opened, "to better serve the North West". James says this opening was less stressful as the company now has the resources in place to better manage growth.

Beginnings
Nationwide depots, a 2,000-plus fleet and anticipated further growth are all a long way from LCH's early days. When the company got into hiring generators in 1990 it could offer customers only seven units. "During the 1980s we'd got to know the industry as we were selling second-hand gen-sets and compressors," James says. This led the company into the hire sector and in 1990 LCH bought its first seven-generator sets from a company in South Wales.
Today the company's customer base is varied. "We provide generator hire to all types of events from weddings to major golf tournaments and concerts," James says.
However, the construction industry is its major customer. James says the company initially did not realise how large the construction industry demand for generators could be.
"We were providing sets for standby use at hospitals and clinics, and possibly didn't know the building industry was potentially so important," says James.
LCH is proud to boast its generators have subsequently operated on many prestigious sites and landmarks throughout the UK including T5 and the Forth Road Bridge.

Expanding fleet
Fleet expansion throughout the 1990s was, at first, modest. By 1995, the company had 100 gen-sets to rent, but by 2001 this had shot up to 1,000 units.
James puts this growth down to knowing the market and serving it correctly.
"By this time we knew the market inside out and we've always believed in doing things the right way."
National growth apart, LCH has not forgotten its roots. The name stands for Little Camoquhill, the house near Glasgow where the brothers grew up.
"We still have a connection with the house," says James. "It's part of our Glasgow depot and until last summer we ran the business out of there," he explains.
In August 2004, the decision was taken to move the headquarters to a new office in Milngavie. "At first, the move was a little strange," James says.
"We'd got used to being in a small office with a large compliment of generators close at hand." Managing the business from an office physically apart from all the rental fleet has brought it home to him just how far the business has come, he says.
Moreover, the new office has helped consolidate operations and has meant all the staff were retained.
"It can be difficult finding skilled and committed people and our staff are important to us, so keeping as many existing employees as possible was paramount," James says.
LCH is loyal to its dedicated staff and, in turn, the company has been loyal to its principal supplier. Northern Ireland-based FG Wilson, owned by Caterpillar, has supplied about 99% of all LCH's generators.
"We're probably its largest customer," says James. Buying from one supplier has been beneficial to LCH as a strong relationship with FG Wilson has been forged.
"We work closely with FG Wilson. The standardisation of our generators on its equipment enables us to provide a higher level of service than some of our competitors that use a variety of manufacturers."
As well as opening new depots - there is a chance LCH may open another branch in the South West - the company is also investing in a new IT system. This will handle everything from inventories, maintenance schedules and other essential functions, as well as accounts. James says the system - all rather secretive - had to be set up in order to expand the business.
"Otherwise we wouldn't have been able to manage the growth."

Further growth
LCH says it has the resources in place for further growth in its chosen generator sector. "We've no plans to branch out into other areas, the trick is to stick to what you know," James says.
He adds that there are plenty of opportunities for more growth in the sector. "Once your focus is correct, you can expand and expand," he adds.
"More of the same is the plan for us," James says.