Lack of work paying for vehicles

[Neil BrunsdonParticipant]

Cluster 24 northfleet
As a new ihc my concerns that since the new computers were installed the work has dried up very quickly.
Last week i only managed a three day week and this week started off badly as i have only done one load on a 2 radial today.
I dont feel that as a new ihc i am being reasured that there is any work coming up in the future.
This is not helping with paying for a new lorry.

[Paul JeffreyParticipant]

Hello Neil.
That’s regular up north aswell. My sunderland based (city centre plant) truck. never did a load again today. This has gone on for a few years now. No one seems bothered or accountable for the state of the situation either. Very worrying.

[Chris LeeseParticipant]

Paul – can I suggest that you speak with the new cluster manager Jeffrey Fielding. He IS accountable.

[James WarnesParticipant]

Not many managers giving an answer

[Paul JeffreyParticipant]

All gone very quiet.? maybe cemex management don’t feel the need to reply to these topics?? as i previously said.. NO ONE IS ACCOUNTABLE FOR THE LACK OF WORK???? or am I wrong????????

[Robert CookParticipant]

The answer is that they are not bothered. The lack of response is because your question is valid and they don’t have an answer. Just look through any of this stuff. When you are correct they ignore you or give some platitude about tomorrow will be better. Ok for them of course as the salary will roll in as usual. Anyway, aren’t all IHCs rich??

[Thomas ColleyKeymaster]

Gents – i can’t qualify as speaking for the whole CEMEX management team and nor am i a commercial/sales spokes-man …

from an operations point of view, all i can say is that the company is definitely going for volume this year – obviously at the right price … which i know we aren’t always the cheapest, but it’s based on quality of material and what else we can offer … when i hear how low some of our competitors are going on price for tenders i really don’t know how they manage to make money … ?! … i think we have perhaps realised now that we were a bit too aggressive on pricing in certain areas and services in recent years – and thus, are trying our best at making some amends for that …

Paul – hearing that plants like newcastle and sunderland etc. are quiet is a real shame as i’m from the north-east and love to hear when my old plant middlesbrough is firing – i hope it picks up for you and knowing the lads up there (who are all a great top bunch of lads) im sure they will be doing their best to get the numbers up … just might mean a few more away days for you down south in the mean-time … i hear that teesside is quite busy at the moment so hopefully you are getting some of that work? …

what i can say for sure is that it is in all of our (CEMEX’s) interests to see all of you guys busy and hitting productivity … speaking for cluster 15 (home counties) we are seeing that (in most cases – but not all) … we had a great january which was surprising as traditionally it’s quiet and i can only hope that has translated to our IHC’s earnings also …

we all wear the same badge on our chest and we all play for the same team – and i really hope the quieter areas can pick some volume up soon, because i know the commercial teams are trying to do the best they can for all of us … and if you’re quiet come to cluster 15 on a busy day as we always need trucks!!!!!

[EricNicholls01Participant]

All IHCs, If at any time you feel you want to come and work in the Central Region and we can supply you with work in one of our clusters either for a day or short term relocation then feel free to phone my mobile 07703107973 as I would love to work with some IHC,s who are prepaired to travel to earn money as long as it has been agreed with your local managment

Eric Nicholls

[Neil BrunsdonParticipant]

yes that is all good but it still does not pay for a new vehicle when you have only a bit of work and when you do get work the plant breaks down with rms problems or maintenance issues

yes this still does not answer my original question??????????

[Thomas ColleyKeymaster]

no it doesn’t – but I have offered a reply for what I know out of courtesy and decency as you had not heard anything else back

I hope others from CEMEX can help answer your question and offer you some more info to reassure you – I suggest you speak to your area commercial reps./managers

cheers, tom

[Robert CookParticipant]

At last, we are being promised some volume. This time last year we complained about the lack of volume so it has taken a year for the penny to drop.

Any action on the part load charges then?

Any chance of last year’s low volumes/activity being reflected in our rates this year?

As for the competitors, I saw one of their bulkers collecting Cemex aggs/sand so maybe that is how they make it pay. They get raw materials cheaper than the concrete business perhaps?

Am I the only one wondering why the cement and aggs side of the business isn’t complaining about the low volumes? Surely, as long as those two are making money the concrete margins don’t matter too much?

[Chris LeeseParticipant]

Bob you know the industry well enough to understand that markets wax and wane and also our activity within them. I am aware that in your part of the world the market has been quiet as we have been. Overall last year was one of progress for the Readymix business which, in 2007 lost almost £20 million. OF COURSE Readymix margins are important as otherwise the losses in Readymix quickly begin to offset any gains elsewhere – we know to our cost that the whole UK business suffers if we run Readymix as a channel. And in any case why should we sell our products at a loss – what other business does that. Last year was not one of “low volumes” for everyone. Many IHC’s appear to have done quite well and also many have entered into new contracts with us. Yes we sell aggregates and cement to competitors – we are after all a cement and aggregates business as well as Readymix. Our aggregates business is busy in parts but has not seen much growth at all in the Readymix sector at the start of this year. Our cement business is busy because our competitors have plant breakdowns but once again has not seen growth in sales to competitor Readymix businesses. Looking ahead

[Thomas ColleyKeymaster]

Robert,

Part-Loads are as they are … £53.00 for each metre not carried in the truck … which in many ways I think is fair, because when someone doesn’t take a full-load we still need to cover haulage, raw material and running costs – and make money out of it at the same time … obviously not for customers who are just wanting the odd 1m3 here and there of course …

I’m not able to discuss rates as I have no say in the matter – and in terms of what our competitors pay for our materials, I wouldn’t know where to start either …

In terms of cement and aggregates being busy, I would say that is probably because plants like Luton, Watford, Hatfield, Cambridge, Letchworth, Aylesbury, Northampton etc. have had really busy starts to the year … and we often struggle to get the materials we order ourselves, believe me!!

[moffattParticipant]

hi just replying to the comments made by Thomas colley with regards to part load charges,i am an o/d based in south yorks and put on this forum some time ago a way to charge customers where cemex gets its profit and you don’t charge part loads!!.
I will explain again and see if you can make a comment on it,i will base it on a price of £60 a meter for cemex to produce at cost
£60 x 6m = £360 if you work on a profit margin of 20% that’s £432 or £72 profit on a 6m load
haulage £50
so what you do is load everything onto the first meter
£60+£72+£50=£182
so the first meter the customer pays for is £182 and then its a fixed £60 a meter thereafter so it wouldn’t mater what the volume of the load was cemex get the profit on 6m and you get NO PART LOAD CHARGES one of the reasons we are loosing work be a bit more realistic with waiting time and be more sensible with cancellation charges and the work will come especially from customers who require 12+ or 24+ ect I know because I have asked them.
it would be nice to get a reply from someone as last time if memory serves me right no one replied to say this was not a good idea to me this would put cemex first to charge NO PART LOADS and just as a final point if you work on £53 part loads then on a 1m it would cost over £300 as it is now or £182 doing it my way,what would you choose!!!

[Neil BrunsdonParticipant]

yes and i thank you for your reply
i would speak to a rep if we had one
and i have raised this with the cluster managers.

cheers
neil

[Thomas ColleyKeymaster]

what area/plant do you cover?

if it’s northfleet try mark wilkinson or neil woolner (sales manager)

[Barry MorganParticipant]

It’s sad to say but we’re really struggling in South Wales.I was informed two weeks ago that our patch is the worse performing in the UK.This month (Feb), my truck has had at least three days without turning a wheel, other days have nearly all failed to hit target. Chris Leese has stated that some areas are under performing, they were aware of it, and quantity would be the order of the day. Fine words butter no parsnips, I’ve been assured that things are going to get better, jam tomorrow?

[Neil BrunsdonParticipant]

hi Thomas
we are still waiting for them to employ a sales manager
yes northfleet in kent cluster 24

cheers neil

[Chris LeeseParticipant]

Hi – a new sales manager has been appointed in cluster 24.

[Barry MorganParticipant]

Great start to the month, one load between three trucks, another lost day.

[Chris LeeseParticipant]

Barry

I am sorry things are quiet in your area. The start of the year has seen the Readymix market dip a little however there are signs things are picking up. There is work available around the UK for those prepared to travel

[Barry MorganParticipant]

It’s not just recently Chris, our figures show that we have been failing to hit the targets set by CEMEX for a number of years. I’m between a rock and a hard place, if it was me driving I might well consider travelling, unfortunately I employ a driver who, I believe would not want to spend time away from home. I can manage with what the truck is earning, as you know I’m coming to the end after 43 years with the company. With the qualifications required for drivers these days I find it hard to believe that IHCs will be easily replaced. I cannot see many willing to sign for a new truck with the present inability to earn enough to finance it. I appreciate that this does not apply in all areas. In your Christmas letter you said words to the effect that quantity should take place over quality in some areas. This doesn’t seem to be happening in our patch. We’ve recently lost a 4000m job with one of our good customers on Rad 2, I believe we dropped the price and then got undercut again. In the ” good old days”, our Area Manager would buy work on a short term basis just to keep things ticking over. Just have to hope that things do pick up, morale is not good here. Appreciate the fact that you have responded, cheers Chris.

[Barry MorganParticipant]

Things have gone from bad to worse, despite assurances that Cemex is doing all it can, last week my truck worked three out of five days, these were out on transfer. The output for Swansea plant for the week was 34m.
This week,Monday and Tuesday,my truck has done one radial 2,£39,our sales reps reply when questioned about the lack of work was ” what do you expect me to do about it?, Hanson and Hope are cheaper”

[moffattParticipant]

if anyone from sales is looking at this please look at my post further up the page it is out of order as I replied to a specific post and may have been overlooked,it would be nice to get a reply

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