THE NINETIES
46
Firstly, it set in motion a programme of pruning. The company had
concluded there was no point in retaining businesses unable to
deliver an adequate return on capital.
Secondly, and more significantly, Vibroplant pulled out of
America altogether in 1996, selling American Hi-Lift to Primeco for
£44.6m. The build up of the US presence had been from a
standing start and was a massive achievement. However, as
Jeremy himself was later to concede, the UK and USA operations
represented two hungry animals to feed and it was impossible to
adequately nourish both. The sell off marked the end of a 15-year
involvement in the American market that had been exciting,
challenging and hugely successful. However, the company had
determined its future lay in the UK market but here, too, changes
needed to be made. Five Star, as the portable buildings hire
business was now called, was sold.
Thirdly, Vibroplant realised that in the changing 1990s there
had to be a premium to pay for its plant offering; equipment was
being hired out at 1980 prices yet plant replacement cost had
more than doubled. The solution was ServiceMaster, a business
model formulated in conjunction with Harvard Business School.
(above)
The directors responsible
for the introduction of
Servicemaster (1996)
Left to right:
Dr John White CBE,
Margaret Pilkington,
Eric Woolley,
Jack Mawdsley,
Rodney Swarbrick,
Ron Hewitt,
Jeremy Pilkington
