MH Southern looks every inch the 21st century importer-distributor. At the Jarrow yard of the three-site business, a new sideloader packs one of its modern crane-offload trucks with latest orders. The warehousing is neatly racked and stacked with an array of products: PSE, sheet materials, mouldings, flooring, decking, redwood and whitewood, constructional hardwoods, Siberian larch, western red cedar, carcassing, cladding, including thermowood, and fencing. The treatment facility is a hive of activity and an automated planer-moulder mill runs at full pitch.
Alongside all this, however, there’s also evidence of heritage – of a company, in fact, proudly celebrating its first century’s trading.
What first catches the eye at Jarrow is the big timber; long, large-section beams in German whitewood, pitch pine and, biggest of all, Douglas fir, stocked up to 14mx600mmx600mm. This is the sort of material MHS started with 100 years ago, and it’s still at the heart of the business. It’s listed first on the website and it’s what managing director James Southern and directors Mark Lowis and Robert Bruce migrate to as a backdrop for a group photo. Indeed, Mr Southern sees its continued presence as helping explain why the company has survived through the good times and the grim.
"We’ve evolved constantly with changing market requirements," he said. "But we’ve also survived by sticking to our strengths, not just in terms of core products, but our commitment to service, maintaining close relationships with suppliers and customers, and ensuring a loyal workforce – and many of our 102 staff have been with us for decades."
MHS was originally moulded by the booming Tyneside economy of the early 20th century. Shipbuilding, mining and the railway sector ruled the roost and these big heavy industries demanded big, durable timber.
Founder Mathew Henry Southern (Mr Southern’s and his cousin Mr Lowis’s greatgrandfather) gained his early experience of these heavyweights at Clayton and Armstrong, one of many importer sawmillers along the river.
"But he was clearly a confident young man, and in 1913 decided to go it alone," said Mr Southern. "Effectively he set up in competition with his old employer!"
Establishing a yard on what is now the site of Newcastle’s river-front Copthorne Hotel, Mathew Henry soon had a thriving business, with its industrial timbers towed down the Tyne from log ponds near the current Jarrow premises. But in the late 20s depression struck and trade, "like today, but far more so", became very hand to mouth.
"Stocks were clearly very low and my greatuncle Douglas, who joined the business with my grandfather Mathew Henry jnr, remembers when a Russian vessel couldn’t get into the Tyne because of storms and the yard risked running out completely," said Mr Southern.
Having returned to growth in the 30s, MHS was then constrained by the second world war timber licensing system, but through the late 40s and 50s it was back on an upward curve. At the same time it was having to adapt.
"The old heavy industries the business was founded on were slowing down, and the contraction accelerated through the 60s and 70s," said Mr Lowis. "MHS evolved in line with this. It became more oriented to its existing customer base of merchants and construction and later the DIY sector, increasing its involvement in other softwoods, carcassing, fencing and machined products."
This evolution was assisted by the relocation to Jarrow in 1963, by which time Mr Southern’s father Peter and his brother John were driving the business forward.
"The move not only allowed construction of premises suited to newly invented sideloaders," said Mr Southern. "It also gave space to increase processing facilities, later expanding from an original 3.5 to 6 acres."
Acquisitions
The transition was given added impetus in 1985 when MHS acquired and assimilated Clayton and Armstrong.
"They were heavily into machining, profiling and pattern making, so it gave us a further push into added value," said Mr Lowis.
Coming up to date, Mr Southern and Mr Lowis joined the company in 1992 and 1997 respectively and it acquired Berwick merchant Tweedside Timber and Joinery in 1996 and importer/distributor Robert Duncan Timber in 2009.
The former continues to operate under its original name, but its range of hardwoods, softwoods, panels and joinery is cross-fertilised with MHS’s and it acts as a delivery hub for the wider business.
Duncan had been highly successful, serving merchants and bigger end users, but lack of development took its toll, recession did the rest and MHS bought it out of receivership. Four years on, following major investment and the embedding of "an MHS-style ethos", the business has staged a dramatic recovery.
"Sales are significantly improved and the customer base is much stronger than at the low ebb of 2009," said Mr Bruce.
Another outcome of the acquisition is that, while Duncan and MHS still operate under separate brands, they have also shared products. The latter has consequently widened its panel products, temperate and tropical hardwoods offer. Duncan, in turn, has taken on MHS’s large dimension clears, cedar shingles and cladding, and such items as BSW Easi Edge.
Duncan’s four planer-moulder mill, treatment unit and MDF moulding and priming operation, has also added to MHS’s addedvalue capabilities and the companies now pool some deliveries.
Meanwhile, MHS has significantly developed its own machining capabilities. Over the past decade it has invested £750,000 and now has a line-up of five planer moulders and four bandsaws, giving annual capacity of 3,000 linear km of mouldings and PSE.
Around £450,000 went on the compact mill, featuring a Wadkin YE 220 planer moulder and 140m/min Almab mechanical handling system.
"The plant can process 9,600m a day and gives us both greater flexibility to take on long runs, and to provide quicker turnaround," said Mr Lowis. "We offer the top 22 profiles on 48-hour delivery."
MHS has also continued to develop its treatment services, now offering Lonza Tanalith E, Tanatone, Vacsol Aqua, and Dricon and Non-Com Exterior fire retardants.
Another major thrust has been to increase the range and volume of certified products. MHS was a pioneer here, achieving FSC and PEFC chain of custody in 2004, and around 50% of sales are now certified.
"We’re also signatories to the Timber Trade Federation (TTF) Responsible Purchasing Policy and strongly back the EU Timber Regulation (EUTR)," said Mr Southern. "We source mainly through our long-standing agents, but also first place some products on the EU market. That means doing all the EUTR due diligence risk assessment paperwork, but it’s something we have to accept to eradicate the illegal trade."
Market diversification
MHS’s original specialism in clear softwoods and big dimensions has not trod water either. While still selling some material to the railway sector and what’s left of UK shipbuilding and repair, it has diversified its markets dramatically. End uses now range from feature beams to joinery, flooring, cladding, furniture and conservatory making and boatbuilding.
This business has also spread its wings geographically. In fact it has been instrumental in MHS evolving from a regional to a UK-wide operation. "This is partly because fewer companies supply this sort of timber and end uses have developed, but also, we like to think, due to experience and expertise," said Mr Southern. "We now cover from John O’Groats to Lands End. We also go to Ireland – even the Scilly Isles."
MHS has not been content just to plough its own furrow through its long history either. It sees itself as very much part of the wider trade and is a long-term supporter of the TTF and the Timber Trades’ Benevolent Society. Mr Southern is also the sixth member of his family to hold the chair of the North East Timber Trade Association (NETTA) and for the past 10 years has additionally chaired its annual Structural Award, which challenges Newcastle University architecture students to design a timber building.
"We believe our industry really must communicate with the market place, particularly specifiers like architects," he said, "and the NETTA initiative can inspire them about timber at the outset of their careers."
MHS acknowledges that today’s trading conditions are not the best backdrop for centenary celebrations. But having come successfully through equally challenging times before, and worse, it is far from downbeat. In fact it continues to invest and develop. It recently bought a £53,000 sideloader and is "always considering new product options". Latest additions include incised fence posts and it is now considering laminated hardwoods.
"It’s not all gloom and doom," said Mr Bruce. "You have to work that bit harder, and keep a constant eye on all aspects of the business, but the sales are out there." MHS’s heritage, he maintained, also helps in the current climate. "You can’t measure it, but it does give us and customers that added reassurance, knowing we’ve got that reputation, experience and history behind us."
Mr Southern is positive about the long term too. "I’d still recommend timber as a career and hope my kids consider having a crack when they’re old enough," he said. "And I have faith in the future of this business. There’s no reason it can’t last another century, and beyond."
