FROM THE ASHES
by Rocky
On 15 March 2002, the Triumph motorcycle factory, located in Hinckley, between Leicester and Coventry, England, suffered a devastating fire that nearly put them out of business. The building had no sprinkler system and it is now considered to be one of the worst – if not the worst – industrial fires in British peacetime history. The intense gasoline fuelled fire reduced aluminum engine components to blobs of metal and it took nearly three days to completely extinguish. Damage was estimated at £70,000,000.
At the end of the assembly line there was a gasoline storage area where completed machines are run on a rolling road (dyno) for the first time. The fire started in that area, but the actual cause of the fire is still a mystery. Security cameras ruled out foul play, but it is speculated that gasoline fumes were ignited when an automatic heating unit came on.
The Canadian market was barely affected as most of our allotment of motorcycles had already been shipped; however, the balance was held back and sent to other markets. 25% of all Triumph production goes to the U.S. It is estimated that production of 20,000 motorcycles was lost due to the fire.
The Triumph works was insured and John Bloor owns it outright, therefore there were no government departments, partners or investors to account to in his decision making. Bloor, the son of a miner, rose from being a self-employed plasterer to become a multi-millionaire property developer and home builder by being shrewd, smart and taking risks with his own money - and not being indebted to anyone. He is one of the richest men in Britain.
Bloor bought the rights to the Triumph name in 1983 with the intention of making England a world class motorcycle manufacturer again. He knew going in that to set up a modern factory with his own money; to design, develop and build world class motorcycles from scratch that would compete on the world stage already filled with superb machines, was a monumental and expensive task.
In September 1990 the new range of Triumph motorcycles was launched. The company had yet to make a profit and Bloor knew from the outset that it would take about a decade for the company to establish a market and for profits to rise into the black. This was expected to happen very soon considering the overwhelming response to their motorcycles around the world.
Financial forecasts were on track and things were very rosy until 15 March 2002.
John Bloor is made of stern stuff and was undaunted by this horrific turn of events. He immediately set to work the following week with a strategy committee, and with the full co-operation of his insurance company, plans were put in place to rebuild the factory. Not only did he have the money and resolve, but he had the experience to map out exactly what he wanted and how to rebuild quickly.
Fortunately, the Triumph factory complex is housed on two separate sites and it was only the final assembly plant that was destroyed. Much of the critical tooling and machinery was salvaged and design, development and engine assembly continued.
It took four weeks to clear the debris followed by considerable repairs to the concrete floor before the new steel structure could be assembled. The heat from the fire had weakened the steel supports holding up the building and it had to be completely torn down. New steel was soon rising and closed in followed by machinery, tooling and assembly lines by the end of July 2002. No employees were laid off and many volunteered their time to assist with the recovery. This was a wise investment in their own future and typical of the British and their stiff upper lip attitude in times of adversity.
By September motorcycles were being produced on a limited scale with full production was reached by December 2002.
The new building has a sprinkler system and Triumph may now have the most modern motorcycle factory in the world with the newest machinery and tooling. One example of their commitment to quality control is an electronic torque wrench that not only torques to the exact specification but also counts the fittings, eliminating human error. Another is an air-decay technique for pressure testing coolant and oil systems for leaks.
Gasoline is now regulated by a computer-controlled machine that dispenses a specific amount of fuel and the area has many safety controls such as automatic fire doors and venting systems should there be a spill. Following the Triumph fire, Victory Motorcycles in the U.S. modified their run-up area in a similar manner to prevent such a catastrophe. No doubt other factories around the world have reviewed their safety procedures too.
The fire damage was actually more devastating than was made public knowledge at the time. It was revealed later that had the fire not been knocked down at the precise time that it was the entire facility would have been lost. That’s how close it was to a total disaster. Had this happened Triumph would have been out of business for perhaps two model years instead of six months. Absence from the market for that period of time may have been too long to recover at all and might have put an end to Bloor’s dream. It also may have been simply too expensive to start all over again.
That is speculation of course, but industry and financial experts share that opinion. As it is, the final tab for recovery and reconstruction has yet to be tallied and in the end may not be made public at all.
To say the least the recovery has been nothing short of miraculous, but it is also typical of the Bloor approach to business.
Patriot Guard Riders on ABC World News
Sunday, March 16, 2008
FROM THE ASHES
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