A-Plant division aims to grow by adding value

Steve Shaughnessy, the new managing director of A-Plant's Specialist Products division, said he wants to narrow the gap between its performance and that of its US counterpart Sunbelt Rentals.

Specialist Products covers powered access, accommodation, temporary power and the rail business among others, and accounts for around 45% of A-Plant's turnover.

Shaughnessy said he will grow the business with new locations, improved product offerings - including an £8m investment in new access equipment - and by diversifying the customer base.

As well as having a younger fleet than Sunbelt Rentals, A-Plant is trying to make itself an easier company to do business with and the added value will be reflected in the hire rates, he said. "If our machine is £13 per week more expensive to hire, we expect the value we add to be worth more than that."

As plant hire has much of its costs fixed, such a move throughout the business could add 40% to 50% to the bottom line, he explained, adding: "It's a position we have to follow and execute if we are to retain our position as market leader."

[Contract Journal, 1 June 2006, p12]