The group, which runs two businesses – Hydraquip Hose & Hydraulics and Hydraquip Braided Hose Division – has seen major growth in recent years, both organic and the result of the collapse of competitors in the recession, which has triggered an expansion of its light commercial vehicle fleet delivering a 24-hour on-site service.
Simultaneously that led to a decision by managing director, Duncan MacBain, to use Hydraquip’s capital to invest in the business and to switch from the company’s tradition of buying vehicles and running them for years to leasing to aid corporate cash flow.
Hydraquip came into contact with Ogilvie Fleet following the decision to add hydraulic engineers and a fleet of 14 fully fitted Mercedes-Benz Sprinter vans from one of the collapsed companies to expand its 24-hour service.
MacBain, who founded Hydraquip in 1989, said: ‘The company leased the vans from Ogilvie Fleet, which also provided a fleet management service. I had never thought of leasing vehicles before, but quickly discovered the benefits particularly in relation to providing the company with monthly fixed costs, reducing our maintenance bills and improved vehicle downtime management.’
Today Hydraquip Group has more than 50 light commercial vehicles on lease from Ogilvie Fleet with a further 15 on order, and more expected to join the fleet as older owned vehicles are replaced and the company continues to expand.
The business currently operates a mix of Mercedes-Benz Sprinter and Volkswagen Crafter vans, but an Ogilvie Fleet analysis focused on vehicle reliability and proximity of franchise service centres to business locations came out in favour of the Mercedes.
Moving forward, it means that the van fleet will be composed of Mercedes-Benz 313 CDI hi-roof models operated on three-year/120,000-mile replacement cycles. Vehicles are fitted with racking and storage solutions by Bott before taking to the road.
Ogilvie Fleet, as well as providing vehicle funding and fleet management solutions to Hydraquip Group, also operates a pooled mileage arrangement across the van fleet to limit the risk of penalty charges for breaking contracted mileage parameters.
