By Mike Travers
GAP Group this week confirmed it will spend a record £82.5m on new equipment in the next year as it gears up to satisfy “unprecedented” demand.
The investment is up nearly 20% on capital expenditure for 2014/2015 and early negotiations with suppliers have ensured the equipment is available to the depot network starting this month.
Group procurement manager Ken Stewart told Scottish Plant: “This record amount of capital expenditure will ensure we will continue to have the youngest fleet in the industry.”
Every division will benefit with almost half the total earmarked for unmanned plant, including excavators. The tools division gets £21m, a share of that going to stock a chain of new hire depots that begin opening this month in the London M25 area, while the rapidly-expanding Welfare Division gets close to £15m for new equipment. Other divisions – Events, Lifting, Non-Mechanical and Survey – will all receive significant investment.
Stewart added: “Our capital budget is deliberately front-end loaded with deliveries of key capital equipment so as to maximise on hire revenue. I’ve been working closely with our OEM suppliers to ensure equipment to our specification is available throughout our depot network from April onwards.
“We operate a forecasting system with our key suppliers to ensure that imported items on traditional long lead times are made available to us. We’re experiencing continuing high utilisation and it’s imperative that we can reserve production capacity with our suppliers to meet unprecedented demand for our equipment.
“We have long-term relationships and commercial agreements with a number of suppliers and they have the confidence of supplying to our forecast schedules. It is encouraging that they can share in our continuing success.”
Article posted 7/4/2015
©Scottish Plant 2015