The recent Industrial Strategy released by the government has highlighted the logistics industry as a key sector in the progression and development of the British economy over the next ten years. But while industry growth has been identified as an area of focus, the report emphasised the need for the logistics sector to contribute to the UK’s decarbonisation goals. This has created a larger requirement for organisations to find ways to boost productivity and efficiency while minimising their environmental impact.
Recognising this, Southgate Global, a leader in equipment, consumables and servicing solutions for packing and fulfilment operations, commissioned a UK industrial survey across organisations in logistics, fulfilment and packaging. Its purpose was to explore evolving sector behaviours, understand organisational trends and priorities, and identify how these industries can best position themselves to meet these growing expectations.
Southgate Global's industrial research shows that almost two-thirds (65 per cent) of respondents prioritise equipment repair over equipment replacement. Data reveals a strong preference for repair-first strategies, with most businesses viewing equipment maintenance as a key operational priority.
Organisations were asked: ‘How much of a priority is repairing rather than replacing equipment such as strapping machines, wrapping machines, electronic tape dispensers, carts and trolleys?’ Respondents were asked to rate the importance of repair on a scale of one to five, one being ‘not a priority’ and five being ‘high priority’. The majority of respondents rated repair as a top priority, with 65 per cent of businesses placing significant importance on repairing equipment before considering replacing equipment. This demonstrates that there is a real appetite to repair, not replace, with all organisations surveyed suggesting they have a need for some form of repair support.
Despite this, Southgate’s research shows that there is contained confusion in the market and a misunderstanding about the availability and expertise on offer to effectively deliver repair. When asked why they would choose to replace rather than repair equipment, the majority of respondents cited possible high costs of repair as the primary reason. Risk of downtime and operational disruption were also frequently mentioned, with organisations believing it is quicker to replace damaged or broken equipment.
With one-third of businesses relying solely on outside contractors on an ad-hoc basis to handle equipment repairs instead of a robust maintenance programme, costs can quickly mount when taking a reactive approach. Furthermore, despite the government’s ambition for the logistics industry to play a key role in contributing to the UK’s decarbonisation goals, only 39 per cent of respondents cited meeting environmental goals as an operational priority – ranking it after improving efficiency and reducing costs.
Southgate Global has met the growing need for repair services, which both manage costs and minimise downtime, without operational disruption, by providing bespoke maintenance programmes to provide remedial and preventative equipment servicing.
Over the past two years Southgate has invested heavily in its Technical Services team to meet the increasing demand for repair. Its skilled technicians offer comprehensive servicing of material handling equipment, including carts, cages and trolleys. This is to extend product life, reduce unnecessary downtime, improve efficiency and supporting with an organisation’s Environmental, Social, and Governance (ESG) goals, by pre-empting equipment failure.
To further meet this amplifying need, Southgate Global launched its Southgate ServAgree app, giving customers the ability to access and manage their inventory, scheduled services and servicing history, all in one place and provide them with the quickest and most efficient service possible. As part of its Technical Services offering, Southgate’s mobile service team can complete on-site maintenance and repairs, ensuring equipment is quickly operational and ready for use.
However, Southgate recognises that repair is not always the most viable option and can also support with understanding if a piece of equipment has come to the end of its lifecycle. For example, Southgate considers the cost of the repair compared to the cost of replacement, taking into account the equipment age and lifecycle, and whether a replacement can offer enhanced features, new functionality or improved reliability.
With more than 40 technicians servicing, maintaining, and repairing over 5,000 pieces of equipment every week, its team has the expert knowledge and breadth to maintain a customer’s entire inventory of equipment, whatever the manufacturer, with a minimal impact on downtime and financial spend.
John Maher, Head of Technical Services at Southgate Global, said: “It’s promising to see that our industrial survey has confirmed the trends we are already experiencing first-hand. As organisations start to look ahead to preparing for peak within the context of the government’s most recent Industrial Strategy, it’s more important than ever that we keep British businesses in logistics and fulfilment fully operational and ready to meet growing demand.
“We have continued to expand our Technical Services offer to aid with this, spanning on-site equipment maintenance and repairs, through to return to base options when more specialised repairs are required. We understand how detrimental equipment failure can be to your operations and your sustainability goals. That’s why we pride ourselves on our fast and responsive servicing offering, which minimises downtime and ensures equipment readiness.”
With more than 50 years’ experience in the industry, Southgate Global has a deep understanding of operational logistics. As leading servicing specialists, its mission is to help boost productivity and efficiency in its customers’ operations. Whether requirements are for a single site, multi-site or multi-country, Southgate can provide all the equipment, consumables and servicing required within operational logistics with solutions to meet specific fulfilment challenges.