Newsletter - February 2010

ALAN HOFFMANN’S VIEW

Regretfully I believe that the world economy will stagger along for at least the first half of 2010 and there will be a slow but definite recovery beginning in the USA and then Europe.

There will be increased demands for raw materials in South Africa and we will certainly come out of the recession in the first quarter and grow steadily throughout 2010.

Unfortunately there have been severe restrictions on capital and there is already an indication of increased insolvencies.

Hoffmann has done extensive research into aligned products which will be attractive for dealers countrywide – overall business leaders need to be conservative, prudent and to be conscious of the need for positive cash flows.

Some companies whilst selling products cheaply on price only are flirting with dangerous cash flows and are unlikely to be in business for too long.

2010 - WHAT DOES THE FUTURE HOLD?

HOW WILL THE WORLD ECONOMY AFFECT SOUTH AFRICAN BUSINESS? To have real answers to these questions you would need a crystal ball because economists are traditionally known as two-handed people whose answer will always be: (a) On the one hand - ABC (b) On the other hand - XYZ Senior businessmen and governments are concerned that there could be another world economic bubble about to burst and although this is not likely to happen it has to be kept in mind.

STRENGTHS OF THE GROUP, DEVELOPMENTS, EXPANSIONS AND BUILDING FOR THE FUTURE

HOFFMANN ENGINES PROVE THEMSELVES AGAIN AND AGAIN IN HARSH AFRICAN CONDITIONS

THE HOFFMANN GROUP HAVE BEEN SUCCESSFULLY ESTABLISHED FOR OVER SEVENTY YEARS. Hoffmann engines have risen to be one of the leading brands distributed in Southern Africa. Hoffmann predict that their range of petrol engines, small diesel engines and engine driven power products will be the leading brand in Southern Africa by 2010. Hoffmann continue to investigate and test new products that will add to the dealers’ range, availability, turnover and profits.

STRENGTH OF THE BRAND

The combination of world leading products backed by replacement parts distributed and supported by strategically located national dealerships is the winning combination that has positioned Hoffmann as a leading power products brand.  There are hundreds of players in the industry but only one Hoffmann.

Each product was extensively field tested in Southern Africa under the harshest possible conditions in applications as diverse as construction, agriculture, mining, transport and general maintenance.  The products were subjected to a process of continuous improvement based on feedback received from this in-field experience.  Once acceptable levels of performance, reliability and longevity were achieved, the products were given a distinctive black livery and branded “Hoffmann”.

Today Hoffmann products are equal to the best in the world and better than most in terms of value for money.  The Hoffmann brand is now firmly established in Southern Africa and favourable reports and enquires have been received from a number of overseas markets.

HOFFMANN MANAGEMENT TEAM 2010 AND BEYOND

“I wish to advise with great pleasure that a positive arrangement has been made with the appointment of a Hoffmann Group management team, people who will fulfil the necessary duties and responsibilities to maintain the Hoffmann Group on an ongoing, and in fact, a growing business”  

-  ALAN HOFFMANN

From left to right:  Benny Booysen (Marketing), Jannie Botha (Sales), Alan Hoffmann (Advisor and assistance with short and long term strategic planning) Colleen Butcher (Financial) and Ron Haywood (Advisor).

SOME DEALERS HAVE STRESSED CONCERN ABOUT THE HOFFMANN GROUP ON THE BASIS OF:

What happens when the “old man” goes?

Although not very happy about the reference to “old”, Alan Hoffmann understands the importance of an ongoing concern in the event of ill health or age which might necessitate him quitting business and an important decision was made to establish sustainability at the highest level.

Alan Hoffmann will assist initially in the establishment of strategic plans and guidelines for growth, especially beginning with 2010.  
More about Ron Haywood  (Advisor and head of strategic planning) -  At one time Managing Director of Midmacor and the leading Honda distributor in the world – also was the person invited by Japan to open the Honda Thailand factory.

He was for several years Chairman of Armscor and was a leader of the South African Chamber of business.

OUR ENGINES PROOF THEMSELVES AGAIN AND AGAIN IN THE HARSH AFRICAN CONDITIONS

Botswana Moremi Game Reserve

“A four inch Hoffmann pump was used to lance support piles into the river bed of the Khwai River to establish a new bridgehead into the Moremi Game reserve at North gate. The high delivery rate of the four inch pump made it an ideal choice for this application. The 4” delivery pipe was fed into a manifold at the work station and there reduced to two 40mm galvanised lances each 6m long with a combined yield of 600l/min at 2 bar. The lances blast away the sand creating a cavity into which the support piles are lowered to refusal on the underlying gravel base. The deepest piles where lanced to a depth of 5.6m with the average for the bridge at +-4m.

The new bridge over the river Kuwait carries all tourist traffic into Northern Moremi with a max payload of 5tons. Constructed by Nordin Environmental & Engineering Services Hoffmann Dealer for Botswana

Regards, Mark Nordin”

ACT NOW AND BECOME PART OF THE HOFFMANN POWER PRODUCTS DEALER NETWORK