The uptick in orders and inquiries at truck and trailer builder Serco in the final quarter of last year is being boosted this year by stability in electricity supply, as well as the relatively smooth rollout of the Government of National Unity (GNU), says Serco CEO Clinton Holcroft.

“Another major positive has been the recent changes at Transnet, which bode well for this key resource to be rebuilt after years of mismanagement.”

Holcroft now hopes, however, to see more decisive steps from government to unlock growth in the South African economy, “which has been constrained by policies hampering development, resulting in an alarming level of unemployment and poverty”.

“If we can see more collaboration between business and government, it is very possible we can return to the 3%-plus growth needed to make a dent in unemployment.”

Congestion and delays at South Africa’s major ports also continue to hamper supply-chain planning.

Another negative is the lengthy delays trucks face at South African border posts.

“There seems to be very little will to address these major impediments to the flow of goods, which adds significant costs throughout the supply chain,” says Holcroft.

Serco had a “really tough year” last year, he adds, with overall sales down 14% compared with 2023.

Orders for refrigerated trailers, in particular, were slow, and were down more than 50%.

Holcroft says SA Inc was under pressure in 2024 owing to less than ideal economic conditions, with many companies opting to continue running their existing fleet rather than buying new vehicles.

This mainly affected Serco’s Durban factory, which produces new truck trailers, with the truck body factories in Johannesburg and Cape Town reporting less of an impact.

Holcroft is optimistic 2025 will see an improvement in commercial vehicle body volumes, with encouraging signs from key customers that they plan to replace their truck bodies and trailers – a decision aided by recent cuts in the interest rate.

Sunny Side Up
One of Serco’s strategic priorities has been to increasingly use power from sustainable sources, says Holcroft.

“After commissioning solar power at our Cape Town facility, we are extremely proud of a record 67% of electricity used across our manufacturing sites coming from solar power. We will continue to drive this into the future.”

Serco is also planning to expand production capacity at its Johannesburg factory following the commissioning of a CNC cutting and bending machine.

The company has also broadened its product range by introducing a new multimode curtain-sider trailer for the beverage industry.

“We have also launched a new lightweight curtain-sider interlink trailer, and added drop-side vehicle bodies to our range, which now includes refrigerated, dry freight box and van bodies, as well as curtain-sider bodies,” says Holcroft.

“We have also added a lightweight glass reinforced polymer composite model to our refrigerated trailer offering, which includes the Protec-coated steel refrigerated trailer, and the premium Protec-plus refrigerated trailer.”

Serco last year also delivered a number of trailers that incorporated an e-charging axle system to power the refrigeration chamber.

Another development is that the company will soon offer finance options for new trailers.

The company now also has a fleet of refrigerated rental trailers available for short- or long-term rentals.

Holcroft describes Bidvest’s recent investment in Serco as “a huge plus”, saying it will be underpinning the manufacturer’s future growth plans.

Serco specialises in the design and manufacturing of insulated and dry-freight truck bodies and trailers.