Local Industry set for marginal growth in 2013 | Infrastructure news

Jacques Carelse, MD of UD Trucks Southern Africa outlines to Simon Foulds what the company has been doing to ensure it continues delivering transport solutions to its customers.

“We are very pleased about the growth in the export market during 2012, as it is evidence of the great potential still lingering in the Southern African truck market,” says Carelse.“It is, by now, well-known that many of Africa’s economies are consistently growing faster than those of almost any other region in the world.With that comes aspects such asincreased infrastructural development, which subsequently leads to a greater need for trucks.”

Since taking on increased responsibilities for the region, UD Trucks Southern Africa has expanded its footprint include more than 60 dealers in the Southern Africa region, including Botswana, Burundi, the Democratic Republic of the Congo, Kenya, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Rwanda, Seychelles, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe.

“We believe our strength lies in the fact that we are able to offer Southern African fleets the support they need wherever they are in the region.In addition, we are focused on balancing the cost involved in operating a fleet, with the products and service efficiency we offer,” said Carelse.

Marginal growth in 2013

“Even though the market finished 2012 in the black, it was certainly a year filled with many challenges, which placed a damper on domestic truck sales,” adds Carelse.“Macroeconomic factors like the on-goingeurozone debt crisis and lower business confidence levels (at 94.1), as well as widespread labour unrest throughout the year, saw truck sales fall around four hundred units short of the industry forecasts made at the beginning of 2012.”

According to Carelse, total truck sales are expected to continue to grow in 2013, albeit at a low rate of around 3.78%, to 28 114 units.

“We expect the market to be down during the first six months of the year, with a recovery forecasted for the latter half of 2013 due to the delayed positive effect of the re-election of President Obama in the US and an increased local understanding of the eurozone debt crisis,” said Carelse.“By July, business confidence should settle down once again, if the various countrywide labour disputes are effectively addressed.”

All segments are expected to grow during 2013, with medium commercial vehicles forecasted to retail around 10 100 units, a 7.8% growth on 2012’s results;heavy commercial vehiclesby 6.1% to 5 250 units;extra-heavycommercial vehicles by a slight 1.2% to 11 614 units; and bus sales by 5.3% to 1 150 units.AMH is excluded in this forecast as itdoes not report segment details.

UD Trucks in 2013 and beyond

In 2013, UD Trucks Southern Africa will continue its drive to offer customers trucking solutions that suit their specific business and operating conditions.For this reason, the company is currently planning, researching and testing a new range of vehicles that are set to change the way Southern African fleet owners think about trucks.

“To us, trucking is so much more than just owning a truck.It is about being there when our customers need it most.About not compromising on the essentials, and offering products and services that potentially generate the most profit for our customers,” said Carelse.

Part of the world’s second largest trucking company; UD Trucks Southern Africa is able to offer customers the best of three worlds.

“By combining the power of our Japanese heritage of quality engineering and manufacturing, withthe global strength, modernity and resources of the Volvo Group, and adding to thatour local expertise, skills and support, we are in a very unique position to offer customers the transport solutions they need,” said Carelse.

As part of this commitment to its customers, UD Trucks’ extensive dealer network has invested more than R100 million in the upgrade and establishment of facilities around the Southern African region and new key dealerships will be opening in Rustenburg and Pretoria during 2013.

A focus on training

Over the past three years, UD Trucks Southern Africa has invested more than R9 million in the training of staff and members of the community.The company is currently training 180 students in a variety of fields, including diesel mechanics, sales and parts consultants, service advisors, industrial and mechanical engineering, as well as a number of experiential learners in HR, marketing, finance and IT.

UD Trucks also offers a unique training initiative for disabled learners, with the new graduates gaining a National Certificate in Manufacturing, Engineering and Related Industries.

“We believe in the vital importance of training and investing in the future of our employees and surrounding community,” said Carelse.“We aim to provide on-going developmental opportunities that not only allow us as a company to achieve our business objectives, but also reduce the unemployment rate in the country and close the skills gap in South Africa and within the company itself.”

 

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