| Past
Issues |
February
2005 |
Continuation of
positive trend
South Africa's trucking industry had a bumper 2004 with record sales. We expect a continuation of this positive trend for 2005 off the back of growing confidence and a healthy economy.
In the past, many fleet owners did not follow a regular replacement programme due to financial constraints and they got to the position where they were finding much of their equipment outdated and expensive to run. These operators are now taking advantage of the strong Rand and low interest rates to replace their older vehicles.
In terms of legislation, positive changes in legislation have occurred, one example being the increase in the wheel base for semi-trailers from 9m to 10m. Concurrent with this, increasing pressure to reduce running costs and avoid costly overloading penalties have hit the industry. In our opinion, this should encourage operators to replace their trailers and take advantage of new technology and materials, which are now being incorporated into trailer designs aimed at improving payload and fuel efficiency.
As more organisations involved in the handling of food products become HACCP compliant, there will be increasing pressure to operate newer equipment and implement tighter management controls. Truck chassis manufacturers have also indicated that the availability of new truck chassis should also improve in 2005 as the truck manufacturers get on top of the backlog.
From our side, Serco will be making further investments in its infrastructure to increase production capacity and to further improve the efficiencies at our facilities in Durban, Johannesburg and Cape Town. We also anticipate further significant improvements in payload being achieved by improving designs and making use of different steels, more aluminium and more polyprop materials.
Serco Industries is a leading manufacturer of insulated truck bodies and semi-trailers.
By Clinton Holcroft and Trevor Holcroft
Serco Industries
