Capital Equipment News April 2024

TRAILER MANUFACTURING

A range of truck body trailers produced by Serco.

Serco not trailing behind in drive to meet customer needs

By broadening its product range, Serco Industries has effectively responded to the challenging business environment in South Africa. With Serco’s specialisation in the design and manufacturing of truck bodies and trailers, the company has gained an edge in a competitive market, writes Adriaan Roets .

A t the start of 2024, truck body and trailer building company Serco Industries expected business challenges. However, despite the onslaught of these, Serco focuses on deliver ing quality products by optimising its vehicles for better payloads, reduced running costs, and improved durability. “Over the past year, our focus has been on diversifying our product range to grow our dry freight offerings, and we’ve seen positive growth there, but the refrigerated trailer side is feeling the pinch of the stagnant economy,” says Serco CEO

Clinton Holcroft. Holcroft mentions that Serco’s refrigerated body business was down 18% for December 2023 to February this year compared to the same period in 2022/23, and the trend looks likely to continue into March. This drop primarily reflected lower-than-expected refrigerated trailer sales. Identifying challenges Holcroft assesses that the most significant factors restricting economic growth in South Africa were corruption, load shedding, crime, and poor performance accountability, which contribute to

excessive unemployment and headwinds to business growth for companies like Serco Industries. Serco also faces competition in South Africa in the form of second-hand trailers. “We saw a flood of second-hand refrigerated trailers into the market last year as certain corporate fleets reduced unutilised trailers,” he says. For customers purchasing these trailers, they do come with their own set of issues, primarily related to costs.

We have broadened our product range to include van bodies and curtain sider vehicles to complement the range of refrigerated and dry freight box body vehicles for which we are well known. We have also engaged with our customers to identify pain points and opportunities for innovate solutions.

Clinton Holcroft, CEO of Serco Industries.

TALKING POINT

8

CAPITAL EQUIPMENT NEWS APRIL 2024