Covertec

Established in 1991, Covertec Ltd., manufacture P.V.C. Covers for the transport industry, as well as providing a full design, graphics and sign writing facility. Irish Trucker took a look at this ongoing success story.

Transway Trailers was established in 1984 to service and maintain trailers for the domestic market. As part of the maintenance process Transway Trailers purchased large volumes of spare parts. As a result of the volumes they were buying, they were able to purchase at keen rates. The company saw an opportunity to supply smaller trailer manufacturers and the end user market with spare parts. In 1987 a sister company Transway Spares was established to exploit this gap in the market.

Natural Progression
The setting up of Covertec - the third strand in the Transway Group was a natural progression. The Transway Group had been looking to break into transport related manufacturing. Transway Trailers had to import all their curtain requirements because of the lack of an Irish manufacturer. The Group saw another gap in the market and from a 2,500 square feet premises in the Transway Trailers yard in Clondalkin a manufacturing facility was established. The company grew at an impressive rate and the premises was expanded to 8,000 square feet in line with a burgeoning order book. However a move to a larger purpose built facility was inevitable.

Purpose Built
A year ago Covertec Ltd. moved to a purpose built, 16,000 square feet facility at Weatherwell Industrial Estate in Clondalkin. It was a dream move for the progressive company. Production levels have soared as a result. In their old 8,000 square feet premises they were stretched to produce 30 to 35 sets of covers per week. The company are currently producing 60 sets per week and they have the potential to produce 90 sets per week, without introducing a second shift.

Potential Growth
Covertech has now surpassed Transway Spares and is on a par with Transway Trailers in terms of annual turnover. Of the three companies Covertech has the better potential for future growth because it has export markets while the other two deal exclusively in the domestic market. The company are very active in Northern Ireland, Wales and England and have plans to expand in mainland Europe in the near future.

Customer Base
The company have built a very strong customer base supplying body builders, trailer manufacturers, trailer hire companies and the fleet sector. Companies such as Dennison Brothers, SDC Trailers, Toughline Trailers, O.K.M. Trailers, Cartwrights U.K., Hireco, Hill Hire and Transamerica are among Covertech’s most respected customers.
On an ongoing basis the company are upgrading Cantrell & Cochrane’s fleet to full colour graphics. They recently secured the contract to supply Showerings (Bulmers) and have just completed a contract for Ballygowan.

Equal Split
There is an equal split between domestic / export markets. The company estimates that they have about 65% of the Irish market at present. Further growth in the domestic market is unlikely and the company plan to consolidate their domestic position while growing the export side of the business.

To that end, they have recently appointed an export sales representative who is based in the U.K. three weeks out of four. The company are targeting trailer manufacturers, body builders, trailer hire companies and fleet operators in the U.K.. The new trailer manufacture market would appear to be over supplied in the U.K. which leaves the market ultra competitive. However, Covertec has the basic ingredients for success - a quality product at value for money.

Quality Control
Covertec now employ 23 people. Conor O’Sullivan heads up the operation as director general manager and has a strong team including a production manager, operations manager, graphic designer, three sign writers, 12 production operatives, one fulltime quality controller, and export sales representative and two administration staff. The company are very much “quality driven” and achieved ISO accreditation in April 1996 and is currently pursuing excellence through people accreditation.

State Of The Art
The company use “state of the art” technology through out the Clondalkin facility and
recently took delivery of another high frequency P.V.C. welder that will further enhance the company’s capacity. In the company’s graphic design and sign writing department “cutting edge” hardware and software is employed to keep them at the fore front of the market.

Sort Lead In Timeh
Given the complexities of the manufacturing process, the lead in time from placing the order to receiving delivery is very short. In certain extreme circumstances orders can be rushed through in less than a day. The company offer a “supply and fit” service in the domestic market and have a van on the road servicing customer requirements. The old adage “a sale is a sale” is very much the motto at Covertec. They are equally happy dealing with a haulier looking to refurbish his trailer or a fleet operator looking to purchase 100 set of covers. With such a positive sales orientation it is only a matter of time until all that extra capacity is filled.