One of the leading providers in the van hire market, Northgate, are planning on expanding their company despite the fact that market conditions are currently proving challenging to the company. Northgate are planning on growing its regional sales team by fifty per cent and are planning on keeping its branch opening strategy on track.
The Darlington-based firm, which also has operations in Spain and Ireland, currently have a UK fleet of fifty one thousand. They recently reported a net reduction of hires of 1,400 units, but managed to increase its regional vehicle hire by two hundred units in the past six months to October 31, by recruiting fifty per cent more staff in its regional sales team since May of this year. Even though Northgate has reportedly lost five of their largest customers, they are claiming that they have already identified opportunities with new potential customers.
They are also introducing a series of improvement programmes which will focus on improving the firm’s regional business, focussing on skills, resources and support for the sales team, and also improving the skills of the national sales teams. Northgate also opened four new branches by the end of this financial year, has identified growth opportunities in sixty two of its UK branches, and has also created an extra 150 jobs in Darlington after consolidating its UK businesses in this region.
Even though Northgate have faced some struggles this year (it has been reported that the firm had to reduce its fleet by almost two thousand vehicles), they are still trying to find ways to expand the company and are remaining positive. Chairman of Northgate, Bob Mackenzie, said “Current trading is broadly in line with the board’s expectations. The group’s market leading position, more effective business model, strengthened balance sheet and ongoing investment in both our people and systems provides the board with confidence that the group continues to be well-placed to deliver significant returns to shareholders.”
Those that rent their own fleets may be thinking of reducing the number of vehicles in order to save money in the next year; however they should also check the price of their van insurance policies in order to make sure they are getting the best deal and saving money.