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These are worrying times for general haulage as companies battle for survival. However, CM discovers there are a few firms that are proving exceptions to the rules of recession.
AFTER 93 YEARS IN business, general haulier WJ Clayton shut up shop in South Wales last month in yet another worrying sign of the ravages of recession on the road transport industry.
The Newport business was unable to sustain its volumes after a key customer pulled out of the area. The company is running a retirement auction on 16 May, which director Richard Clayton says will allow it to leave the sector in a profitable position rather than leave a trail of bad debts.
"It's a hard industry for general hauliers; we are a dying breed," he says. "It's time to get out while we are ahead, we could carry on now, but in six months' time, it's likely we'd be at a loss.
"There's not much work in general haulage, but it's expensive to keep up payments such as staff, land and fuel for the 29 HGVs. Many in the sector will be forced to pack up and many will go to the wall. We want to get out with our heads high."
Winding down
Following a 90-day consultation, WJ Clayton's key customer, aluminium recycling group Novelis, is closing its depot in South Wales. The contract, according to Clayton, accounted for 90% of his business
The family run haulier has already made 10 redundancies this year, and 30 more will be made as it winds down before the auction, which will be run by Malcolm Harrison Auctions at the WJ Clayton yard.
Difficult trading
It is not only small general hauliers that are suffering. Suttons Group, which has an £80m...