Certex UK - The Interview
Raising lifting equipment standards

Certex UK, the UK leader in lifting gear product supply and service, is enjoying strong growth. Renowned as a lifting gear provider with over 50,000 products, from steel wire rope to overhead cranes and runway systems, in recent years demand has increased dramatically for its tailored lifting solutions, including system design, installation and maintenance, operator training and safety inspection. This has led the management team to move to a new purpose-built building in Harworth, Nottinghamshire, and invest in further business enhancements to give even better service.

A key factor driving Certex UK's continuing growth is the legal pressure on industry to ensure high standards of lifting gear safety through use of properly certified equipment. Meanwhile, Certex UK's recent acquisition by Axel Johnson International, rather than changing the company's successful strategy, provides a springboard for future growth, Kevin Smith, Certex UK Operations Director, told Warehouse & Logistics News.

Warehouse & Logistics News - When was Certex founded?
The Certex business was born out of Bridon, a leading wire rope manufacturer. Bridon built a worldwide distribution network, and it became Bridon's model to supply a complete package, including lifting products and service.

WLN - When did the Certex name come in?
In 1995 Bridon's distribution network was re-branded Certex. The new name stood for 'Certainty and Expertise'. Certex became established in 20 countries with over 120 locations worldwide, including 15 in the UK and over 30 in the USA.

WLN - Prior to Axel Johnson's purchase, Certex UK was a standalone company. How did that come to happen?
FKI bought Bridon in 1997 and in 2005 sold the Certex businesses around the world. Tony Stringer, Managing Director, Charles Gillespie, Sales and Marketing Director and I took the opportunity to take part in an MBO. Charles and Tony were already working for Certex and they called me to join them.

WLN - Why did Axel Johnson buy Certex UK? What does it mean for the business?
When FKI sold the Certex businesses, AJ bought the operations in Scandinavia, Baltic, Germany and Russia, and since then they have been working under the umbrella of its Stockholm-based Forankra division. We report to Forankra now, reuniting us with many Certex colleagues.

WLN - What are the benefits of being part of a large group?
We can source from alternative lines of supply, and share best practice. Axel Johnson is privately owned, so we can concentrate on what we do best, serving customers, without the distraction of changing strategies as a result of short term fluctuations in share prices.

WLN - Who owns Axel Johnson?
Axel Johnson Group's owner is Antonia Johnson, the fifth generation of the Johnson family.

WLN - How big is Forankra?
Its Certex operations turn over £100m with a further £18m from the UK.

WLN - How would you sum up the Certex UK proposition?
We provide a complete package of lifting products and services, supplied by a professional, responsive, qualified team. They key is our professionalism: anyone can sell lifting gear, but few offer installation, maintenance, inspection and training throughout the UK.

WLN - What is your brief as Operations Director?
I head up Operations and support the sales function in delivering products and service.

WLN - How much are you involved with customers?
I get involved in top-level technical presentations and have relationships with customers, but not account management responsibility.

WLN - How big is Certex UK's operation?
We currently employ over 180, with 15 lifting centres throughout Great Britain, including more than 60 field service engineers.

WLN - How fast are you growing?
Certex UK's sales have grown 50% in the last three years, to £18m. We've acquired two new businesses in this time. The first was GDP, which has formed our Certex Defence division, with facilities in the Naval dockyards in Portsmouth and in Devonport. In Caerphilly, Wales we acquired Ropetek, a highly respected business, which combined with our product sourcing is already achieving results.

WLN - Any plans for more acquisitions?
Watch this space! The AJ deal provides strong financial support, which allows us to develop our business through organic growth and where sensible through acquisition.

WLN - What is Certex like to work for?
It's a vibrant young company. We grabbed the chance to put things right when we took over. We have an invigorated, fresh, enthusiastic management team who believe the strength of the company lies with its employees, who are second to none.

WLN - Are you looking for more staff?
We're recruiting widely, especially on-site engineers. We have our own apprenticeship scheme, and our big emphasis is training. My number one priority is to enhance our competency matrix and raise skill levels.

WLN - What types of lifting gear do you supply?
Certex is involved in everything that lifts, lowers, pushes, pulls or suspends. This includes slings, shackles, hooks, hoists, cranes and lifting beams, supported by value added services.

WLN - Which brands do you handle?
Bridon rope, Crosby lifting hardware, Kuplex and Gunnebo lifting chains and slings, Checkmate textile slings, Bulldog chain hoists, beams and Demag hoists. Our wire rope sales have grown, but sales of other products and services have grown at a faster rate - good manufacturers gravitate to us.

WLN - Which products do you make yourselves?
We make specialised fabricated structures, tailored lifting gear and wire rope assemblies, and varied products such as playground equipment and rope fenders for ships.

WLN - What are your latest developments?
We've invested in a new service division for pressure and ventilation systems. This works because they need periodic inspection like lifting gear.

WLN - How do the lifting centres work?
Our centres provide walk-in service, phone service or fulfilment of on-line orders. Each carries core stock lines and items specific to their local customer's needs.

WLN - How long does it take to supply equipment?
Normally we aim to supply within 24 hours from the local lifting centre or directly out of our central warehouse in Harworth. We offer same-day delivery for breakdowns.

WLN - How does your business split into sales and services?
Product sales are 65% and the rest is service, which is growing at a fast rate.

WLN - How big is the UK lifting gear market?
Our addressed market is worth £80m: we have 25% and rising.

WLN - How many customers do you serve?
We have 3,000 live customers with the focus on larger accounts, principally ports, construction, offshore, engineering, manufacturing, utilities and steelmaking. The skill is in spotting new markets and offering a unique solution for our customers.

WLN - How big a problem is lifting equipment safety?
The biggest problem is people misunderstanding their obligations. The old regulations were replaced with the Provision and Use of Work Equipment Regulations (PUWER) and Lifting Operations and Lifting Equipment Regulations (LOLER.)
The Requirement to hold proof load certificates and 6 monthly thorough examinations was superseded by the new regulations which put greater emphasis on equipment safety, placing the onus on the user as well as the supplier. From Certex's perspective, we ensure our products have undergone a Thorough Examination prior to dispatch; we inform customers about using it safely; and ensure it's safe to use for the application. Users' employers must ensure kit is safe to use and properly maintained, it complies with EU directives and the user is suitably trained. Certex helps customers comply with this legislation.

WLN - What certificates are needed, and who supplies them?
Manufacturers supply CE compliance of conformance, Safe Use instructions and a report of thorough examination.
Some large companies still believe having proof load certificates puts them in the clear: it's not that simple. They must ensure the people performing the inspections are competent. The law is more searching now: cut-price inspections aren't worth the money, as they are paying lip service to legislation and not protecting employees.

WLN - How frequent is inspection? Who carries it out? What are the penalties for not certifying lifting gear?
Normally examinations are carried out 6 monthly or 12 monthly, depending on the equipment. A 'competent person', however, may change the period depending on frequency of use, when it needs replacing and the consequences of failure.
Some lifting equipment is seldom used, so it doesn't need frequent inspections. Lifting equipment thorough examinations must be carried out by a 'competent person' as defined in LOLER. We offer LOLER and PUWER appreciation courses, and more detailed training on examination and safe use of lifting equipment. Penalties for not adequately maintaining equipment can mean prison or fines: companies can be punished even for the possibility of injury.

WLN - What testing, certification and remedial work do you offer?
We carry out all testing, repair and re-certification of equipment that customers require, which we offer throughout our network.

WLN - What is the level of UK's industry awareness of the need for certification?
Thorough Examination and compliance with EEC safety directives are the key elements: people are aware of the need, but not always the level of thoroughness required and the consequences of non-compliance. We win contracts and have established a reputation by bringing equipment up to a level of maintenance that increases the equipment serviceability. We often see poorly maintained equipment that other people have certified as okay. When there is a failure it is often the owner that is found to be at fault, not the company doing the last inspection.

WLN - What are you doing to raise awareness?
We're doing articles like this and driving our campaign in different sectors. Competency is king!

WLN - Are you involved in any professional bodies?
Certex is a member of the Lifting Equipment & Engineering Association (LEEA): Tony Stringer, our MD, sits on the board.

WLN - You've recently moved to larger premises. Where were you before?
We have combined our head office and hub into a single operation with a further 30% of space for expansion, and a plot of land we can build on.

WLN - How much have you invested in expanding the company in the last year?
We've invested £500,000 in Harworth, and AJ are keen to see further investment continue.

WLN - What's changed following your reorganisation?
It's business as usual following the move to Harworth and sale, but with access to more funds to invest.

WLN - What have you done to improve your service delivery?
We're continually improving our service. We are investing in a new computer system to help us to reduce administration, which allows staff to concentrate on what they do best - serving the customer. A recent customer survey gave us an excellent score but identified areas that we can improve.

WLN - You use the CertMan software system for managing lifting gear certificates. Can you tell us about that?
CertMan originated in the offshore environment and is used to help us control our customers' lifting equipment and tell them when inspections are due. Our on-site inspection service details are recorded onto CertMan, allowing us to produce reports within 24 hours. A customer can then view their equipment register online.

WLN - What training do you provide in height safety and safe lifting?
The LEEA exams are the basis of our customer training. We run tailored courses for customers, either at our depots or at their site.

WLN - How do your own staff rate in training terms?
We invest heavily in training. We've recently won top student awards in two LEEA courses, with our QA manager, Trina McAnulty, being the first woman to achieve best student overall! Such awards aren't unusual for us.

WLN - Do you offer a hire and manage outsourced lift gear service for larger customers?
Yes, primarily in offshore, motor manufacture and steelmaking.

WLN - How are you organised to develop and implement complex lifting solutions?
We set up dedicated project teams from our central resource in Harworth. Charles and I get involved, working with our manufacturing partners.

WLN - How long do big projects take?
Solutions take from a few weeks to a year: we produce case studies from time to time.

WLN - What are the biggest external factors effecting your business?
The biggest factor is steel price volatility leading to concern that people in the supply chain are profiteering. Membership of Axel Johnson gives us greater stability: ensuring smarter buying. There's good equipment coming from the Far East, but some is poor. The other Certex businesses have strong links with the low-cost countries, so we have good intelligence to know where to source the best quality equipment.

WLN - Where does Certex go from here?
We've really focused on our service levels and telling customers what's really happening to their order! We're doing a lot of work on continuous improvement, driven from our customer survey and from within.
It's business as usual but with Axel Johnson's backing, at an accelerated rate. We're at the quality end of the market working hard to convince customers that cheap and cheerful is not the answer and will cost them more in the long term. Lifting gear is an area where safety and quality is paramount, and we're there to help.

Certex (UK)
Head office and Central Sales
Tel: 0845 230 7475
www.certex.co.uk