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Covid crisis forced Inverness-based MacGregor Industrial Supplies to cut jobs for the first time in its history


By Andrew Dixon

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MacGregor Industrial Supplies Inverness locator...Picture: Gary Anthony..
MacGregor Industrial Supplies Inverness locator...Picture: Gary Anthony..

An Inverness-headquartered firm says it had no choice but to reluctantly make some redundancies in order to survive.

MacGregor Industrial Supplies – which has several branches – was hit by the pandemic and Brexit in the year ended March 31, 2021.

An annual report accompanying the firm’s latest accounts stated: “Profit before tax increased in the prior year due to efficiencies gained in the business during Covid.

“The company was managing to deliver bigger sales orders on lesser staff numbers due to a strong demand for PPE, hygiene, paint and garden machinery products.

“We also reacted quickly to source supplies for our customers to allow them to stay open. At the point of lockdown, the wellbeing of our staff was made priority and the company operated on a reduced staffing level of 70 at the start with reduced delivery services and branches initially operating on a click and collect basis before reopening adhering to recommended Covid measures.

“The company mitigated the effects of the initial reduction in trade through using the government’s furlough scheme and reducing staff numbers through voluntary and compulsory redundancies.

“This was the first time in the company’s history redundancies were made which was tough, given the circumstances, but had to be made for the business to remain resilient and survive.”

It continued: “The company benefits from a dedicated loyal workforce which the directors recognise as a key success factor of the company. Never more so [this] was demonstrated during the pandemic. The teamwork and camaraderie to deliver excellent customer service was first class.

“We are massively grateful and thankful to our staff for the dedication and support during this year and we are proud and fortunate, as directors of MacGregor Industrial Supplies to lead such a great team.”

It added: “We have survived and now it is time to thrive and continue to improve the business.”

Turnover decreased from £35,274,598 in 2019/20 to £34,544,805 last year. For the same period, pre-tax profit increased from £263,327 to £1,234,058.

The firm described the revenue figures as remarkable, given the circumstances.

It stated the current financial year started strongly but as it progressed “it feels like the challenges never end”, in particular supply of goods, labour and increasing inflation rates.

The report added: “Every cost the business has is increasing.

“Brexit has certainly been a contributory factor, however worldwide factory shutdowns or reduced patterns of working due to Covid and lack of raw materials has impacted supply which has led to product price increases.

“Energy prices are continuing to rise from fuel to run our delivery fleet, to electric and gas to heat and run our buildings. Fortunately, the latter have been covered by contracts, but these are due to renew in financial year 2022 which will result in cost increases.

“Insurance premiums have increased. The company will need to continue to control costs and focus on profitability for the remainder of financial year 2022 into the financial year 2023.

“Supply of labour has been an issue as predicted before Brexit. However, it is not just Brexit that has impacted this with early retirement and a different perspective on working patterns also contributing to this supply.

“A key action to retain and attract staff was implemented on November 1, 2021 with the company becoming Scottish Living Wage accredited. We will continue to implement initiatives towards supporting and retaining staff.

“The company works passionately to service its customers and deliver the right product to them at the right price, at the right time and to exceed their expectations.”

The average number of employees decreased from 318 in 2019/20 to 315 last year, while staff costs dropped from £7,893,989 to £7,537,081.


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