More dealer deals in the pipeline? Yes, says Laurie Dealer

Laurie Dealer has been twiddling his thumbs this week as the lack of major announcements from the dealer network leaves the used truck guru wondering if we have seen the last of the major acquisitions.

Empire's have been expanded under several banners in past 12 months with Northern Commercials moving into Manchester, Heathrow Truck Centre adding Morgan Elliott, Crossroads snapping up Hartshorne, Guest Trucks enveloping Sherwood Truck and Van, Keltruck expanding with the acquisition of Silurian, Midlands Truck and Van buying Gerard Mann, Imperial Commercials adding brands and territories and...

...well, there are a few others in the pipeline. Laurie Dealer's ear has been low to the ground and word is the next couple with be more strategic purchases of individual sites to compliment existing networks.

What it also suggests is that there are some cash-rich dealer groups out there willing to bridge the gaps and take business to a different level.

A bigger slice of the cake with more depots and satellite service centres offers economies of scale but it also widens the risk. There is a lot more management, trouble shooting, and pulling together required as well as making sure there is enough work to keep the wolf from the door. 

When Laurie Dealer emerged through the ranks the number of chairman, dealer principal and MD in any given franchise networks numbered in its hundreds. All small localised franchises meant dealers knew their areas, but it also led to vastly different levels of service and sales offered through one franchise name.

These days it's all multi-franchise businesses, thanks to bloc exemption, and having fewer franchises and wider areas to cover, the word 'territory' is no longer appropriate, has seen standards rise.

The shape of the networks has mirrored the changing landscape of the haulage industry as hauliers go to the wall and businesses consolidate; the make up of both the national dealer network and haulage are bigger businesses but less in number.

As one franchise MD duly pointed out this week to Laurie Dealer: "The industry appears to want all its eggs in one basket, and the plan is to carry that basket very carefully."

With a few deals still on the table its unlikely Laurie Dealer has heard the last of the expansion and consolidation story this year.