22.05.2007

IPS forms new UpRight Subsidiary

Independent Parts and Service, the Telford based parts and service specialist, has formed a new company, UpRight Powered Access Sales UK, to sell UpRight powered products to both end users and rental companies in the UK.

The new subsidiary will be headed by Glen Pountney, who has been associated with UpRight for many years, both as a salesman and an independent sub dealer.

The new branding was officially launched at SED today.

Richard Tindale, sales & marketing director for UpRight Powered Access, said: “Consistent branding makes things easier for our growing UK customer base.

IPS has demonstrated over the past 12 months that it can fully support our UK customers, helping us to significantly grow UpRight sales. A clear message illustrating the close links between manufacturer and sales organisation will help to reinforce this relationship which brings great benefits to UpRight buyers”.

“We do not share the UpRight brand name lightly – this is a long term, strategic investment by both parties and demonstrates that, as the UK’s largest aerial lift manufacturer, we are serious about winning significant market share in the UK.”

UpRight Powered Access Sales UK has already appointed a network of eight regional sub-dealers, providing nationwide coverage.

Vertikal Comment

UpRight worked in the UK through an independent ‘master distributor’ for many years after it sold its Instant Zip-Up affiliate to its management in the early 1990’s. When IZU sold its rental business to Hewden several years later, the remaining sales operation was renamed UpRight UK with a controlling interest remaining with the managers.

It was not until the slower years of 2001 to 2003 and the manufacturer’s difficulties in North America, that the strains of working through a master distributor in what is largely a direct sale market brought an end to the long standing and highly successful arrangement.

UpRight took over and for a period until Tanfield bought the business last year, sold its products direct through a wholly owned subsidiary.

Tanfield quickly realised that it faced a whole series of challenges with the UpRight business, one of which was product support in the UK. It decided to team up with IPS largely for product support and end user sales. Retaining the right to sell direct to major rental companies.

The relationship has apparently worked well for both parties with rising market prices helping create some inancial room for such a shift. When the IPS dealership deal took place the risk of entering the agreement was, in our opinion largely carried by IPS.

This move to rebrand the UpRight sales business at IPS is intended to smooth the way for IPS to take over all sales including those to major rental companies. This time round the risk is probably greater for UpRight, depending on how it handles its relationships with major renters and its relationship with IPS.

However any risk is most likely minimal, with UpRight not having a great deal to loose at this point, but as the company ramps up its production and the next market slow down arrives and slimmer margins need to be shared by two… the relationship could face challenges.

However the upside for the manufacturer is that it does not need to carry the overhead of a UK sales operation and it can focus its resources on production and new products.

In balance this looks like a good move for all concerned – IPS, UpRight and most, if not all customers.