Q&A with Andrew Woodward, Managing Director of Materials Handling

Tell us about your role and current responsibilities…

We officially started the business in August 2022 and started approaching dealers in the materials handling sector with our newly formed but experienced team, offering an improved process from customer proposal, through to pay-out and in-life agreement management for materials handling assets.

I oversee the business on a day-to-day basis, supporting the sales team with dealer visits and queries, as well as liaising with our sales support and credit colleagues to ensure we provide the best service levels in the market.

My view is that we are a service-orientated business, and our commodity is money, so we need to differentiate ourselves from other funders by demonstrating our commitment and specialisation in this sector through superior service levels.   

What was your journey to Close Brothers?

I have worked in asset finance for 35 years and specifically in the materials handling finance sector for the last 26 years. During this time, I have headed up vendor finance teams for Investec, Aldermore, BNP Paribas and developed longstanding relationships with many dealers and manufacturers.

Due to my experience, I would like to think that I understand their requirements better than most!

What is the Materials Handling team and what is different about how it operates?

We are currently a team of eight – four in sales, with an additional two in sales support and two credit specialists, all based out of our Manchester offices. We work closely with the Wholesale Fleet team, who are incredibly successful in the car finance space, and with there being so many similarities, we are very keen to share ideas.

The focus, specialisation and expertise in our sector is crucially important to us and one of the main attractions of joining Close Brothers. With this level of knowledge, we are better able to provide solutions to our dealers and assist in advising the best way forward.

Who is a ‘typical’ customer and how do you work with them?

There is very little typical about our customers - we offer finance packages for firms of all sizes, from the rental or purchase of fleets of trucks for large PLCs, to a single forklift for a SME, and everything in between.

We provide a service-driven proposition to our dealers, enabling them to promptly provide competitive pricing to their customers for the rental or sale of their products, responding quickly with acceptances - in the majority of cases - with dealer branded finance agreements.

Once the trucks are delivered, we will pay out, often on the same day, while billing and collecting maintenance from the end user on behalf of the dealer.

As a specialist materials handling funder, we are fully focused on ensuring the dealers get the best possible service and the feedback we’ve had so far indicates we are a valued part of the process.

What is your outlook for the Materials Handling sector?

The Materials Handling sector is very robust and resilient, having demonstrated how crucial it is during Covid and various recessions. Forklifts are a necessary asset in manufacturing, warehousing and distribution, and it is difficult to name many scenarios where a forklift does not feature in the supply chain.

There are technological developments in all sectors, but the scope and diversity of forklift applications will ensure that it will be a very long time before these assets are surplus to requirements.

The mode of power has undergone change with a high demand for electric trucks caused by regulatory change, along with the increasing cost of diesel and gas.

The longer lead times for new trucks because of manufacturing delays has been an issue for all, but this is likely to reduce over the coming year and despite the economic downturn, many dealers are positive about the future.   

What is it about working for Close Brothers that is different?

Close Brothers has provided us with an opportunity to specialise in a sector we know well and we have been given the freedom and support to do the job in the way we see fit.

It is indicative of Close Brothers’ philosophy to nurture and encourage specialist businesses who understand their market to grow without the overriding generalist finance company restrictions.

Although it’s still early days, the support and positivity we’ve received from within the business has been much appreciated.

What’s your favourite part of your role?

Getting out and meeting dealers, understanding their requirements and providing a solution for their finance needs along with those of their customers, and also hearing the positive feedback from dealers on the service provided!

I really enjoy seeing relationships grow and develop over the years, often through different generations within dealerships.

The feedback from dealers has been extremely positive, which is testament to the work and effort put in by the whole team. It’s easy to promise a first class service, but it is the team behind us that is crucial in making this work.

You’re also joint President of the UKMHA – what does that involve?

The UKMHA is the UK Materials Handling Association and is the trade association for our industry, representing manufacturers, dealers and suppliers across our sector.

I’ve been on the board for the last 12 years and am proud to give a little back to the industry. As joint President I’m required to attend meetings to promote the association and ensure it’s representing the members with suitable levels of support, and in particular the promotion of safety-related projects and events.

The three board meetings we hold annually enables the directors to get together to review budgets, promotional and marketing projects, and review progress in line with member feedback.

Tell us one thing people may not know about you…

I’m a keen ‘real tennis’ player and have played against HRH Prince Edward twice – once at singles and once in a doubles match, winning the first and losing the second!