Cosworth

Source: Manufacturing Digital

Date :07/07/2008 17:20:37

Cosworth races into aerospace

Written by Ian Armitage and Produced by Alex Barron

Cosworth is a name which to most is the epitome of motorsport engineering.

It is, and always has been, a recognised centre of excellence for automotive engineering in the UK and its contribution to motorsport has been such that it was the recipient of the coveted Motorsport Industry Association (MIA) Business of the Year award for 2003.

However, when the chequered flag came out at the end of the 2006 Brazilian Grand Prix it brought down the curtain, at least temporarily, on a 39 year love affair, which saw Cosworth become the second most successful manufacturer in the Formula’s history.

Only Ferrari has won more races and no one has supplied more teams.

A sad day for F1

Leaving F1 hit the business hard and change was very much needed if it was to continue moving forward. “Our exit from F1 meant we needed to refocus the business,” says Tim Routsis, Managing Director.

And refocus it did. Cosworth today successfully leverages its motorsport pedigree, performance technology expertise and globally-recognised brand to provide high quality engineered solutions for a growing customer base across diverse industries.

“Our remit is to grow profitably in sectors adjacent to motorsport; markets which have an appetite for our particular skills and capabilities,” explains Routsis. “We are now engaged in designing and developing engines and components for marine, locomotive and aerospace applications, predominantly. We also have an aftermarket business, which is particularly strong in North America, where we have a facility in Torrance, California.”

Cosworth’s reputation, it seems, has fuelled customer demand from some pretty diverse market sectors, and the company couldn’t be more pleased. “We’ve been delighted with the demand we’ve found for our services” adds Routsis.

It isn’t surprising that Cosworth is enjoying success; nor is it surprising the move has worked. The company’s head office in Northampton is home to leading edge engineering, world class manufacturing and comprehensive test facilities.

“Our business is geared to deliver smart solutions and exceptional service to customers around the world,” says Routsis.

Under Starter’s orders

In February, Cosworth completed the installation of a brand new piston manufacturing line at its Northampton-based headquarters. It is the largest investment of its kind for a high speed piston manufacturing line in the UK for at least two decades.

“This is a vital part of our diversification model,” explains Routsis.

Targeted at the aerospace and niche engines markets – those Cosworth has earmarked as growth markets - the line is capable of machining complex crown and skirt features on pistons ranging in diameter from 50mm to 180mm.

“The machining process is fully automated and each piston goes through a thorough crack testing process, as quality is paramount for our aerospace customers,” says Routsis. “The system was supplied by Takisawa of Japan and is point-designed for our needs.”

According to Routsis, Cosworth has always been a major player in designing and supplying specialist pistons and the investment means it is now able “scale up production” to meet the demands of some of its larger customers “without compromising on quality”.

“This investment,” he adds, “reflects our view that if we want to maintain a manufacturing base in the UK - which we do - we have to be looking at activities that have a very high intellectual capital input and high degree of automation. If we succeed in pitching ourselves at that type of work, we see no reason why we can’t be competitive on the world stage, even though we are based in a relatively high cost area.”

The company has already won a large contract with Lycoming to supply all of its pistons for their general aviation engines

Cosworth takes off

Routsis is pleased that Cosworth is achieving success once again. He believes the brand has been “invaluable” because “we find that we are seen as highly valued engineers”. Consequently, more and more clients in a diverse range of industries are engaging with Cosworth to, as Routsis explains, “talk to us about how we might solve their problems”. “Without the name, maybe we would have found the initial interviews harder to set up,” he says.

As a group, Cosworth is growing at a percentage of 34 percent per annum, exceeding even the most ambitious growth targets. “At the end of 2006, sadly the exit from F1 meant that we had to downsize the Northampton workforce substantially, which was an expensive undertaking for the company, notwithstanding the human dimension,” says Routsis. “So 2006 was a costly year for us.

“2007 was our first year of effective diversification, and we are now enjoying very strong growth. We are really quite excited by the future at the moment.”

There is an enormous opportunity for Cosworth and Routsis has been surprised with the number enquiries from “people who want to engage with us”. However, he is “mindful” of the turmoil in the global economy, saying “we need to be a little careful”.

That aside though, Routsis says “the opportunities for Cosworth, if anything, are bigger than we thought they were going to be when we first started out down the diversification route.”

A people business

Businesses are all about people. If you disagree, then perhaps your business isn’t what it could be. Well, that is certainly Routsis’ stance, as Cosworth’s employees have played a pivotal role in the company’s transformation: “The people that remained in Northampton were committed to the road map we worked out and their commitment has been pivotal in achieving the growth and successes that we have done,” he says.

Going forward, Routsis explains that investment will be targeted at “continuing to upgrade our manufacturing capability to make sure that we will be at the top of the food chain in the markets for which we make manufactured components.”

He thinks the remarkable growth Cosworth has enjoyed over the last 18 months will almost certainly continue, but in the long term, levels will drop off: “Ultimately, I would like to see Cosworth established as a global player with greater overseas representation than it currently has. We want to continue our strong growth and to cement our position as a topflight supplier of engineering services, globally,” he concludes.

Celebrating its 50th birthday this year, we should all be excited about Cosworth’s bright future.