Diversification helps ride the recession

A recession-prompted
drop-off in construction
activity has inspired
some logistics firms
specialising in the
movement of building
materials to rethink their
business models.
“The building industry
has been drastically
affected by the economy
and we’ve gone through
quite a lot of changes
this year. The only
way we’ve been able
to ride through this
economy is to expand
our routes and diversify
our thinking. We are
maintaining our current
client base, but instead
of concentrating on
one area or commodity
we’ve adjusted to
others. Previously it
was one or two routes
that enjoyed the highest
volumes concentrating
on one or two industries,
but now we are seeing
more focus on the Far
East and expanding
into Germany, Turkey,
France, Pakistan and
the US where we have
experienced a higher
volume of enquiries,”
Vivienne Lentner,
managing director of
Inter Logistics told FTW.
During the height of
construction activity a
couple of years ago, tiles
imported from Italy and
Brazil were the mainstay
of the firm’s import
business. Looking ahead
at construction trends
in order to anticipate
renewed demand for
materials, Lentner
said there was some
sentiment that building
projects may resume.
In the meantime she is
overseeing the expansion
of the vehicle fleet
to enable distribution
and delivery, with an
emphasis on airfreight
and sea freight delivery.
Truck imports are also
picking up, she noted,
after flat-lining last year.
“Our focus is on the
needs of South Africa,
and right now that
seems to be project
machinery. We’ve seen
a lot more machinery
coming in, with a higher
volume of foodstuffs,”
Lentner said.