A neighbourly meeting between a timber company boss and a haulier has a delivered a boost to their businesses in the north of Scotland, as well reducing wasted journeys.
GMG Energy is a sawmill based on a farm on the Halladale Strath between Tongue and Thurso
It’s director Malcolm Morrison lives just two miles from haulier owner Paul Ferguson in Dumfriesshire, although the two businessmen had never met until a year and a half ago.
The duo have forged an alliance which has enabled GMG to serve a wider market and for Paul Fergusson haulage to support new customers in a manner that involves them both as part of the “circular economy”.
What is the circular economy?
Think-tank Chatham House defines the circular economy as: “Designing out waste and pollution, keeping products and materials in use for as long as possible.
“The circular economy means moving away from the world’s current – and enormously wasteful – economic model of ‘take, make, throw away,’ in which resources are extracted, turned into products, used and discarded.”
Mr Morrison noted the circular economy was “a hot topic” at the moment with a Scottish Government minister assigned to its promotion which includes cutting waste, using local suppliers and rethinking the way goods and services are used.
Making deliveries viable
Mr Morrison said: “Paul was delivering to the north of Scotland and his vehicles were often returning empty, since sourcing appropriately-timed return loads can be problematic. At the same time, I was looking to widen market share.
“So when Paul has capacity he can undertake deliveries locally around my business’s Halladale area and transport my products to customers in central and southern Scotland, allowing him to group more work together and make deliveries viable.”
Mr Fergusson has grown the number of other customers he works with in Sutherland and is looking at setting up a base in Inverness to meet demand.
He said: “Since I started liaising with Malcolm, it has been more than beneficial for everyone. It’s much better for the environment since I am not running an empty lorry for six hours and it saves hugely on costs.
“There are not a lot of places in north where you can get loads back south and Malcolm’s contacts have been invaluable.
“One major knock-on benefit is it has allowed me to network with other local companies and, because I am now so busy in the area, I am now seriously considering basing a lorry permanently in the region and employing a driver in Inverness to service demand.”
GMG Energy is also working with Orkney Pallets as it builds its business on the islands and beyond. It is now supplying regular loads of treated timber to the St Ola-based company, substantially reducing its supply chain mileage.
GMG Energy recently acquired a substantial swathe of forest in the far north-east of Scotland earlier this year to protect future supply.
GMG Energy has invested £150,000 in sawmill equipment
It processes in the region of 2,200 tons of timber a year and replaces every tree it harvests.
At well as the forestry purchase, GMG Energy has invested £150,000 in sawmill equipment which takes larger timber and processes it into posts, rail, cladding and purlins, or structural roof members.
The company also plans to spend around £100,000 on timber treatment equipment which will open up new markets among construction companies and farm businesses requiring treated and stress-tested products.
Conversation