“A lower cost alternative to mandatory bunding, could be the continued permissibility of single skin tanks, combined with mandatory annual inspections and product replacement after a predetermined period of time”
A lower cost alternative to mandatory bunding, could be the continued permissibility of single skin tanks, combined with mandatory annual inspections and product replacement after a predetermined period of time e.g. 15 years, 20 years etc. Clearly, the benefits and drawbacks of such an approach need to be considered further. But assuming there would be no detrimental impact upon the environment, such an initiative would reduce capital investment costs and create a welcome and ongoing revenue stream for storage tank installers.
Sustainable growth
Beyond Northern Irelandand Wales, opportunities do still exist for technicians and manufacturers to successfully and sustainably grow their business. Across the UK, we are working with a number of heating oil technicians, who appreciate Carbery’s commitment to growing its business through its customers.
Whilst no manufacturer can ever guarantee exclusivity to any customer, Carbery seeks to avoid a scenario, whereby our product is almost as readily available as Coca Cola. Such a distribution strategy may work well for impulsive purchases such as soft drinks, but for oil tank installers it can prove disastrous. A ‘Dutch auction’ can result, whereby multiple installers are left to slug it out on the basis of price… in the absence of product differentiation and at the expense of margin and profitability. Not surprisingly, in a market typified by oversupply and low demand, a growing number of responsible installers value our approach to sustainable product distribution and marketing.
In the Republic of Ireland, Carbery is also piloting an Installer scheme, whereby we generate leads and back sell on behalf of technicians who demonstrate a preference for our products. It’s potentially a real win-win for all concerned. It engenders loyalty to our products, helps to ensure installations are completed correctly and recognises and rewards responsible technicians. Once the scheme is established in Ireland, we expect to roll it out elsewhere too.
Such initiatives are indicative of the long-term approach Carbery takes to its chosen markets and supporting responsible technicians, who share the company’s long-term commitment to the industry.
Testing times
A similarly long term commitment also underpins Carbery’s approach to product development and manufacturing too. Whilst we recognise the importance of a competitive product offering, we also understand this cannot be at the expense of quality. Our tanks are characterised by both a greater wall thickness than some competitors and a greater material shot weight than some other tanks on the market, creating products, which are ‘built stronger to last longer’. In addition to a zero tolerance approach to the use of inferior and sub-standard recycled polymers, Carbery also believes in extensive product testing prior to releasing any new product into the marketplace.
For new products, testing is initially undertaken in-house, before product is sent to Impact Laboratories in Grangemouth for testing and certification in accordance with both OFTEC’s OFS T100 standard and European Standard EN13341. Many installers and technicians over recent years have got wise to the fact that just because a tank has an OFTEC logo on it – and let’s face it, most tanks do – it doesn’t necessarily mean the product has ever been tested, never mind OFCERT licensed. We will never launch a tank until we’re confident it exceeds such requirements and we note installers increasingly welcome this responsible approach.
Commitment
As a business, which has been around for over three decades, we remain firmly committed to the oil heating industry and will remain committed in the decades ahead. However, for our industry to grow and prosper will require us all to do things differently in the future, than we do today.
We need to recognise that, heating oil may no longer be the default choice of householders, be they on or off the mains-gas network. Instead, we have to compete for such business against both established and new energy sources.
That requires vertically integrated thinking, from the company that fills the tank, to the technician, which services the system on an annual basis. It doesn’t necessarily mean grandiose promotional campaigns and the expense that goes with them. But it does mean that as an industry, we need to better understand our customers, communicate with them more effectively and proactively offer considered solutions to their space and water heating requirements. And we need to recognise that such solutions will not always engender government support. However, by effective marketing, lobbying and promotion, our industry can head off the worst excesses of over-regulation and sometimes ill-considered policy decisions at a European, national and regional level.
With over 1.5 million heating oil installations throughout these islands and millions more across Europe, the oil storage tank industry and the oil heating industry will survive for decades to come. But on the basis of current evidence, it will probably bear little resemblance to the industry that many of us have known for the bulk of our working lives. Such change doesn’t have to be a threat and indeed at Carbery, we see it as an opportunity both for manufacturers, for installers and for continued product and service innovation.