The last 12 months have been tough for all the markets where the Gough Transport Group operates. We have faced significant drops in truck and trailer registrations combined with lower freight volumes and lower kilometres travelled, all impacting our industry and, therefore, our sales.
On top of this we have had to deal with a general market squeeze on capital investment, new law changes, strong competition and a number of customers going under as a result of the slow economic conditions.
Despite these challenges the entire Transport Group is on target to meet our budgets and we are kilometres ahead of our previous year's performance. It is particularly pleasing to see significant performance improvements in Gough Transport Solutions from Australia and Gough Materials Handling; both now profitable and ahead of budget. Gough Materials Handling is having a very strong year in large truck sales combined with re-securing the Toll, KiwiRail and Tegel North Island business. This business, along with the reengineering project undertaken over the last 12 months, has ensured that Gough Materials Handling is in good shape and will finish the financial year well ahead of budget.
Transport Wholesale has enjoyed a gradual increase in average daily sales fuelled by the market swing to maintain and repair existing plant rather than replace the older equipment in their fleets. Transport Wholesale recently supplied Fonterra with a large order of wheel nut indicators as an important health and safety initiative to allow a simple visual check to avoid loose nuts causing expensive downtime and parts replacement or worse, catastrophic wheel detachment resulting in injury or death.
Transpecs have been very active in the new trailer market and even though this market has been soft this effort has resulted in major increases in market share for our principle brands including SAF, WABCO, EDBRO, ALCOA and RINGFEDER. This market share growth has been the result of promotions, success on major projects and renewed partnership with key OEM trailer builders. Transpecs have some exciting new developments and offers ahead.
Palfinger NZ too has suffered from the downturn in the construction industry, significantly reducing the number of cranes sold. Even though the volumes are down, market share has increased, cementing Palfinger as the number one choice for truck mounted mobile cranes in New Zealand. Palfinger NZ is currently enjoying some good success in the Hookloader market and excellent feedback and acceptance of its recently released MBB range of tail lifts.
I would like to thank the entire Transport Group Team for a great effort in difficult times.
Glenn Stapleton
General Manager - Gough Transport Group