Clugston has come a long way since the acquisition of its first truck, way back in 1922. Now, the company discusses its recent fleet expansion, and an exciting pipeline of potential new business

It was exactly one hundred years ago, in 1922, that JG Clugston Ltd started trading as a timber and builders merchant, from its base in Carlton Street, Scunthorpe. After acquiring its first truck – a Maudsley – the company steadily developed its fleet to include all the major British-made vehicles, such as AE, Albion, Leyland, Morris, Ford, Bedford, and Commer. In 1937, JG Clugston incorporated into a new company: Clugston Cawood, and from 1939, both companies were heavily involved in the war effort, transporting vast quantities of bulk materials to assist the construction of the new RAF Bomber and Spitfire stations close to Scunthorpe.

Come 1946, JG Clugston formed yet another new company, Colvilles Clugston Shanks, in partnership with the British Steel Corporation and Shanks & McEwan. The company provided insulated tipper vehicles to transport bulk materials from two sites in Scotland: the Clyde Iron Works at Camberslang, and the Ravenscraig Works at Motherwell. This was followed, in 1961, by the incorporation of Clugston Slag Co, which took over the assets of Clugston Cawood, before amalgamating with JG Clugston, five years later, when Clugston Transport was born, followed by the launch of the company’s central transport depot on Scunthorpe’s Brigg Road – where it remains to this day. Renamed Clugston Distribution Services in 1988, the company has since performed an ever-expanding range of goods handling and commercial vehicle services, from warehousing, stock control, and repairs, to vehicle sales and export, and bulk fuel distribution.

Speaking with Transportation & Logistics International, Alistair Clugston, CEO at Clugston, insists that he is proud to be “flying the flag” for his family business. “We’ve had to deal with world wars, miners’ strikes, and stock market crashes,” he continues. “On top of that, the last two years have been some of the most challenging the business has ever faced, with the aftermath of Brexit, followed by a shortage of drivers, and now rising fuel prices. But through it all, we’ve managed to keep focused and continue diversifying into new areas that allow us to grow and expand.”

As an illustration of what is an exciting time for Clugston, the company has made a significant investment in its fleet in recent years, with truck numbers rising from just over 60 to more than 100. Accounting for just short of a third of all its vehicles, the biggest portion of the company’s fleet is specialized for steel distribution – a core component of the business for more than seven decades. Further additions are on the way, driven in part by a strategy centered around acquisition.

“We’re always looking for new opportunities,” Alistair insists. “Clugston has been a Scunthorpe-based company, and we’re proud to be one of the town’s largest employers. At one time, there were 30 different companies in the group, so if you speak to anyone in Scunthorpe, they’ll either have worked for Clugston, or they’ll know someone who worked for Clugston. The challenge we have ahead is how to grow the business. We have sites in Hull, Driffield, Teesside, and a base down in Icklingham, Suffolk, and we’re looking to expand around the country, with more depots and maintenance facilities, and to grow the business in our key specialisms. That might mean acquiring another family business, one that doesn’t have a continuity plan, and whose owners are looking to retire, or it might mean going into a company that’s enduring difficulty, and using our size and experience to add stability.”

For Alistair, a key to realizing Clugston’s ambitions is the need to build more robust relationships with the company’s existing customers. “I’ve been directly engaging with our customers, ringing them up for a chat, visiting their premises, or inviting them to see us,” he comments. “Interacting with people is important. We used to get together with one of our longstanding customers every six months or so. Now, we’ve brought that down to six weeks. The meeting itself doesn’t have to be long, but it helps us both to keep in touch with each other regarding any issues that we might not know about.

“In terms of new business, we’ve got a few irons in the fire for the next three to six months,” he adds. “We’re getting a lot of interest from companies overseas, who want us to bring materials into Europe, which would be a new step for us. We won’t say no, however – if it’s profitable and has longevity, then we’ll make the investment to ensure we have the necessary equipment, drivers, and the training in place to take it all the way over the next five to ten years, and really integrate it as a capability within the group.”

Amid a shortage in drivers, the value of training for companies such as Clugston has never been greater. The company has designated trainers for each one of its divisions, who hold regular sessions with its drivers, while regular training reviews provide drivers with an opportunity to discuss difficulties and challenges on the job.

“Once a driver is in the truck and off down the road, we might not see them from one week to the next,” Alistair points out. “They could be going to a problematic site that we’re not aware of, and these reviews give us the information we need to then talk to the customer and make sure the issue is resolved for our drivers. Or it might be making suggestions – for example, ‘why aren’t you using cruise control on this particular journey?’ – which they might not have considered.” This year, the company has brought on board six drivers from scratch, providing funding for their initial driving lessons and further training. “They’re now out on the roads, demonstrating a fantastic standard of driving,” Alistair tells us. “By investing that time and energy, it helps us to improve our operating standards, and get the best out of the resources we have available.”

Armed with this strong foundation, the future for Clugston is looking bright. “With the troubles we’re seeing around the world, be it the economy, fuel prices, or labour shortages, it’s important that we’re able to keep our feet on the ground, and manage the situation as best we can,” Alistair admits. “That means looking after our existing customers, our fleet, all our staff and employees, before we go and jump into other areas. But that said, we’re a hungry business, actively looking for new opportunities, and for the right customers to grow alongside. Inevitably, we’ll need to take the business forward into new areas. Our fuel division, for example, isn’t going to be transporting fuel forever. Instead, we’re beginning to divert our attention to fresh sectors, with green energy obviously being key.

“Looking at where we are now, I’m hopeful that we’ll be able to double the size of our fleet within the next five years,” he suggests. “We have 15 more trucks on order this year – the challenge is finding something for them to do, but we’re confident that we’ll be able to initiate some new business.”

But as Alistair is keen to emphasize, nothing is more important for Clugston than remaining true to its roots. “We really want to continue to run with the ethos and mindset of a family business,” he confesses. “So far, we’re doing that successfully. If there was a company up the road offering our drivers one pound more per hour to drive, it’s really clear to me that they wouldn’t all just up sticks and leave. Instead, they’re loyal to us, recognizing that money isn’t everything. What matters more is being part of a team, working alongside good colleagues who you get on with, and exploring the world together. That’s where we find ourselves today. We look after our drivers, and it’s what makes the difference between us and other companies.”

Clugston
www.clugston.co.uk
Services: Transport and distribution

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In warehouses and industrial worksites where forklifts are commonly used, its important stringent safety precautions are put in place. Forklifts are very popular in the warehouse and logistics sector as they offer great flexibility in handling heavy loads in confined spaces and are able to operate with small turning circles that other vehicles can’t handle. But whilst they provide a highly practical materials handling solution, accidents are unfortunately all too common with forklifts being involved in around a quarter of all workplace accidents.

The unfortunate frequency and severity of accidents have earned forklifts a reputation as the most dangerous piece of workplace transport equipment being reportedly involved in up to 50 percent more serious accidents than large good vehicles (LGVs). Accidents are often due to poor training, procedures or supervision and lack of segregation. The design and operation of the vehicle also presents problems with forklifts being very heavy with the weight unevenly distributed at the back to compensate for heavy loads, and this makes them prone to overturning which can result in serious crushing incidents. There are around 1,300 serious forklift accidents reported each year often resulting in life changing injuries, but when employers and employees work together to commit to safe working strategies around forklift use, most of these accidents are avoidable.

What can employers do?
Assess the risk
Employers should start by establishing a good understanding of the risks involved around forklifts and the specific hazards within the work environment. Under The Management of Health and Safety at Work Regulations 1999, businesses are required to assess and manage risks to their employees and others arising from work activities. The risk assessment should identify what hazards there are and what precautions need to be taken to reduce risk.

The assessment provides the basis for putting targeted safety systems and procedures in place to address concerns and reduce the opportunity for accidents. Where forklifts are used, a risk assessment should be carried out to identify the risks around the vehicle operation and in relation to the specific work environment where it is used.

RIDDOR reports that 25 people lost their lives after being struck by a moving vehicle at work in 2020/21 highlighting the need to protect pedestrians. Segregation of people and vehicles is recognized as one of the most effective ways to reduce the opportunity for forklift accidents and fatalities so any risk assessment should include a review of the worksite and locations where forklifts are used and the challenges and opportunities for providing total segregation.

Address the risk
Once risks are identified, formal procedures should be established to ensure that work is carried out in the safest way possible. Clear company safety procedures ensure everyone has access to a common set of rules to follow. Employers are responsible for putting suitable procedures in place and communicating these to the workforce.

Most serious accidents are down to poor training or supervision so the importance of training can’t be underestimated. Forklifts should only ever be operated by trained personnel. Training should be made available to everyone who works in or around forklifts as sadly many accidents and fatalities occur with pedestrians in the area. RIDDOR data around forklifts shows 75 percent of ‘impact with a third person’ involve pedestrians that were completing tasks ‘unrelated to the immediate truck operation at the time of their accident’. Pedestrians need to understand the risks to others and the procedures in place for their protection.

Reduce the risk
There are several pieces of legislation and mandatory requirements around safety at work and the safe use of workplace transport which must be followed. But employers can opt to go above and beyond mandatory requirements to make their workplace safer. Incorporating additional safety systems and procedures is a good idea to help reduce the chance for accidental injury and financial damage.

To achieve segregation, it’s worth considering one-way systems and completely separate turning circles or reversing areas if space allows. This significantly reduces the risk of collision with pedestrians.

There is a vast range of safety equipment available that can enhance workplace safety. Proximity warning systems and wearables can make a real difference by alerting pedestrians and operators of hazards through vibration, audible alarms and lighting that raises users’ awareness to risk. These system can also directly interact with vehicles to slow them down or stop at junctions. It’s also helpful to use technology to gather event data from every breach so that each incident can be used as a learning tool to prevent future accidents.

In addition to standard safety signage requirements, it’s also worth considering extra measures such as reversing cameras, automatic barriers and control gates that interact with users and additional illuminated signs, projectors and signals all help increase situational awareness.

Workplace accidents and injuries not only risk lasting impact on individuals lives but can also destroy businesses financially and reputationally. Employers have a duty under health and safety law and a moral responsibility to the workforce to ensure safe working practice. Never wait until a forklift injury or death takes place to take action. Taking a proactive approach to safety is the best way to prevent accidents from happening. v

For a list of the sources used in this article, please contact the editor

David Thomas is General Manager at ZoneSafe. ZoneSafe Proximity Warning Systems, manufactured by Avonwood Developments Ltd, provide a range of practical solutions to help reduce accidents, collisions, and serious near-miss occurrences when working with plant and materials handling equipment. ZoneSafe increases visibility and awareness, improves performance, and positively changes organizational and workforce behaviors. ZoneSafe solutions enhance worker safety across many industry sectors, including warehousing and logistics, waste and recycling, construction, utilities, and aviation.

Proximity Warning & Alert Systems – ZoneSafe Home

Never has there been a better time for the logistics sector to accelerate its drive to sustainability. With the cost to fuel a lorry now more than £25,000 a year, the fuel crisis is pushing many small and medium-sized haulage firms to the brink. The knock-on effect will be the continued rise in price of goods as supply chain actors are forced to respond to ever-more expensive transport costs.

The haulage sector in particular stands out for its vulnerability. About 70 percent of the sector comprises small owner-operator fleets with fewer than ten trucks. Many of these businesses were already struggling to recover in the aftermath of Brexit and the recent pandemic. In a May survey of 73 haulage firms, asked what problem was restricting their growth: 50 percent said finding good drivers, 43 percent stated finding new contracts, and 27 percent said cost of running their fleet.

The UK cannot afford to lose these businesses. Our supply chain depends on them, our economy depends on them, because in a consumer-driven economy, we need access to goods in order to drive growth. If these owner-operator and medium sized fleets disappear, our economy is in real trouble.

However, there may be a way to turn this crisis into a best-case scenario. Today’s prices mean that – for now at least – it’s cheaper to charge an electric HGV than it is to fuel a diesel one. High charging costs previously made this an unattractive proposition, but today we have the chance to truly pioneer a national switch to zero-emission goods vehicles. The government has committed to a switch from 2035 anyway, but there’s no reason we can’t accelerate those plans. The case for moving to greener goods vehicles is much more compelling.

One of the issues we have is that much of the infrastructure required for a viable electric HGV network does not yet exist. A report commissioned by the Competition and Markets Authority revealed that there were only 1,000 public electric vehicle charge points outside of London in April 2021. That figure is even smaller for charging points specially designed for electric HGVs. These figures are growing, but it needs national coordination by the government. The second issue is that the cost of electric vehicles is still almost twice the cost of a diesel HGV. More support is needed to help smaller firms upgrade their fleets.

Today’s fuel crisis could be the perfect impetus to drive forward tomorrow’s investment in the future of transport. We need the government to recognize this opportunity and move to implement the EV Recharging Infrastructure Fund as quickly as possible: this £690 million fund is designed for a national grid of electric charging stations. At Zeus, we see that the key distribution hubs in the Midlands and North are Manchester, Birmingham and Newcastle. An e-HGV can do 150 miles on one charge, so we need to plot out charge points accordingly, based on key ports and factory areas.

We have the opportunity here for the UK to capitalize on the fuel crisis by building resilience into our supply chain. But for us to move to the next stage, we need the government to step up to the plate. Short-term incentives will help support hauliers, but we also need to be looking further ahead. This means fast-tracking the roll out of the Local Electric Vehicle Infrastructure Fund from the Office for Zero Emission Vehicles, which will help unlock the resources needed to make much of this possible.

It is worth noting that going electric is not only more sustainable in the environmental sense of the word. It is also a better economic decision for Britainin the long term, as electricity generation can more easily be produced without imports. In time, we could switch to completely national electricity generators, truly delivering a sustainable economy that is also a sustainable and sound environmental strategy.

The fact is, if we want our economy to grow, we need to ensure that the flow of goods, raw materials and produce throughout the UK can be kept in motion, and transforming to a zero emission network is the most resilient option.

Clemente Theotokis is Chief Executive Officer at Zeus Labs, a tech start-up simplifying the haulage industry and driving the sustainable freight agenda. Founded by Jai Kanwar and Clemente Theotokis in 2019, Zeus Labs enables shippers and hauliers to unlock new advantages, streamline the delivery process, cut down on unnecessary administration, reduce unused freight capacity, and increase the productivity of supply chains across the UK.
www.zeuslabs.com