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.