Manufacturers announce increased profitability by moving up the value chain

By Made In Group
schedule25th Mar 22

Leaders from three manufacturing businesses share how adopting a problem-based rather than product-led approach has resulted in more meaningful customer relationships and a wealth of new growth opportunities. Jonny Williamson reports.

SOLUTION-FOCUSED SALES

Citizen Machinery UK, based in Bushey and Brierley Hill, is a world-leading CNC machine tool manufacturer supplying the latest Cincom sliding-head and Miyano fixed-head turn-mill technology.

It is perhaps best known for its bar-fed mill turn lathe machines, with more than 120,000 delivered to date. These are commonly referred to as ‘mother machines’ as everything around us contains components made on these machines.

Citizen Machinery UK - LATEST SLIDING-HEAD LATHE HOLDS SINGLE-FIGURE MICRON ACCURACY

“I can guarantee that you will have touched or used something today manufactured on one of our machines,” said Edward James, Managing Director from Citizen Machinery UK.

“For many years, we sold machines and machine packages with some added value in the form of accessories, training, installation and set-up,” Edward continued.

“Around four years ago, we started to see a shift towards customers expecting a fully worked out, end-to-end solution that has been proven off-site before delivery, complete with attachments, peripherals, in-house-written software and perhaps additional robotic functions such as cleaning and packaging.”

As a result, Citizen Machinery UK began delivering a solutions-based approach. Something that really took off during the height of the pandemic. The business had already unveiled its new £3m turning Centre of Excellence in Brierley Hill in 2019 and rebranded and repurposed its Watford headquarters into a dedicated solution centre at the start of 2021.

Adopting a solution-focused approach has been instrumental in moving the business forward, Edward commented. “It has helped us to double turnover and profitability in the last five years, not only through solutions-based business but through finding new end users because of this enhanced offering,” he commented.

Now, Citizen Machinery UK aims to build on this foundation and establish itself as a market leader in added-value solutions. A move that could prove decisive in the race to reshore production.

“The desire to reshore work back to the UK means we need to provide both flexible and efficient solutions for our customers to remain competitive in a global playing field,” Edward concluded.

“With our new approach, we aim to become an integral part of our customer success. Be that through improving existing processes, helping win business with low margins, improving resilience or, most importantly, overcoming the issue of an ageing workforce.”

KNOWN FOR SOLVING PROBLEMS

Having the confidence to pitch for and win lower volume, more complex work is paying dividends for Birmingham based Frederick Cooper.

For almost 150 years, the business has been at the forefront of the finishing industry, utilising the latest processes and tools to provide high-quality paint spraying and powder coating.

One of its first forays in this new direction came via Bentley Motors. The iconic British luxury marque needed someone to chrome-plate a catch for the fridges installed in one of its models.

“It was only a few 100 parts a year but we devised an innovative solution that helped forge a relationship that lasts to this day,” explained Managing Director, Jon Stone. “It led to a long-term interior mirror painting project for Bentley which required 23 different paint colours on interior mirrors.”

Jobs like these saw Frederick Cooper start to build its reputation for solving complex, intricate projects that no one else wanted to take on. Fast forward and the business painted more than 500,000 components for Bentley last year.

“We spotted the opportunity, took our chance and we built that long term relationship. We've repeated that on many projects over the last few years with customers including McLaren, Bugatti Lamborghini, Heineken and Coca-Cola to name but a few,” Jon explained.

“We open up boxes, we pick up parts, we improve components, we mask, we paint, we polish, we repack them correctly. Ultimately, we add value. That’s what Frederick Cooper is focused on in 2022 and beyond,” he concluded.

THE BEST PERFORMANCE IN 350 YEARS

When Bill Buhler was offered the opportunity to buy Rheintacho UK from its German parent, little did he know the journey he was about to embark on.

As a manufacturer of measuring devices, sensors and accessories for rotational speed recording and monitoring, the Leeds based business has had its finger on the pulse of technology for decades.

As Managing Director and a former consultant of the company, Bill was well versed in Rheintacho‘s expertise and capabilities.  The key to making his decision was his interactions with employees.

“I held a meeting with all of them together to inform them about the plans and then I held a round of individual face-to-face talks with each of them,” Bill explained. “The fact that everybody promised their support is really what convinced me to buy the company. It was like a motivation bolt through the company and every person continues to outperform more than I even anticipated.”

Bill also offered assurances to both customers and suppliers. “We were in the middle of a supplier transition programme to move some products that we used to source in Asia and the EU to the UK,” he noted.

“For example, we're in the midst of finally approving gear production at a company in the UK. It took almost nine months but we were patient and knew we had enough stock of existing gears coming from a German company to be able to bridge that period.”

Finally, Bill spoke with the banks. Being an American citizen, residing in Germany and looking to buy a UK company proved somewhat tricky, but fortunately, fellow Made in Yorkshire member Clarion Solicitors offered valuable expertise and support.  

Having bought the company, Bill’s first task was to identify potential weaknesses and address them. He then started delegating tasks and targets to various groups of employees.

“Everything we’ve gone through and that has been put in place means our future now looks bright. Interestingly, January 2022 was our best month ever in terms of sales in the history of the company, which combined stretches back over 350 years,” Bill concluded.

MEET, CONFER AND SHARE BEST PRACTICE 

Stories like these are exactly why the Virtual Breakfast Mornings are so invaluable.

60 minutes out of your morning to hear inspiring and thought-provoking conversations, build relationships with like-minded fellow manufacturers, and gain a clearer picture of what’s happening beyond your factory gates.

I look forward to seeing you at the next one.

*Header image: pixabay.com


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