Hi-Tech Mouldings

Source: Manufacturing Digital

Date :12/06/2008 14:22:05

Sceptics might say UK manufacturing is dead. Hi-Tech Mouldings is proof to the contrary. Exec learns more

Written by Ian Armitage and Produced by Ben Weaver

Hi-Tech Mouldings, part of the Hi-Technology Group which described itself as “a total concept manufacturer,” is a focused plastic injection moulding company based at Waterlooville near Portsmouth, where it employs 150 people in the manufacture of specialised plastic components for a number of different industries.

Its latest accounts report revenues of £12 million and the company’s aim is to continue to grow at a steady rate of around five per cent per annum.

This might sound like a modest goal, but this is the turbulent UK manufacturing industry where market conditions have been difficult in recent years.

Despite this, and somewhat ‘bucking the trend’, Hi-Tech Mouldings has seen remarkable growth – a whopping 34 percent in 2006 alone.

“We are doing extremely well,” explains Operations Director Richard Brown. “In the last financial year we saw five percent growth; the year before that we saw even more. The future looks just as bright: we are fairly buoyant with the new tooling orders we have coming through and know we have work secured for 2009.”

The plant at Waterlooville includes a tool making facility and a manumould area where low cost tooling makes it possible to produce small batches of complex components economically. It also has a mould shop, which is equipped with a number of specialist machines, as well as a sub-assembly area and product assembly area.

“The Waterlooville plant is the jewel in the crown,” says Brown. “And we also have established another facility in Slovakia based on the principles of the UK plant.” Slovakia? Exec wondered. So Hi-Tech is following the trend to move manufacturing overseas? “No,” says Brown. “Although some of the manufacturing itself might now be done overseas, the intellectual rights and the ownership reside in the UK.”

The UK operation, he reaffirms, is Hi-Tech’s “crown jewel.”

Hi-Technology Mouldings Slovakia - as the Slovakian entity is formally known - is the first subsidiary outside of the UK to be established and the Hi-Technology Group views the business as a substantial asset for its long term business strategy. “It will play an important role in our long term future,” says Brown. “This isn’t a signal that we plan to leave the UK; in fact it makes us stronger.”

Tough times?

In recent years business has been tough for injection moulders and, while volumes of material processed have increased, margins have been constantly squeezed. The outlook remains for a challenging environment with, at best, only limited growth.

“There is a lot of doom and gloom in the industry,” says Brown. “Personally though, and as a business, we don’t share that opinion. You make your own opportunities and if you are focused and your team understands what you are trying to achieve then you are successful.” So, UK manufacturing isn’t dead and buried then? “I would challenge anybody that says that” stresses Brown. “It is nonsense. Anyone saying that UK industry is dead and buried shouldn’t be in it. The challenge is there; there is work to be had and you have to go out and find it. It doesn’t come to you.”

And Brown’s policy of going out and securing the work has certainly proven to be a successful strategy.

What’s in a name?

Hi-Tech Mouldings got its name from an ability to work with specialist materials, high quality, low to medium volumes and, above all, world class manufacturing processes, making it a popular choice (its name is Hi-Tech after all!).

Investment in state-of-the-art business management systems and the latest technologies has helped underpin this reputation, enabling the company to position itself to best serve the needs of its customers now and well into the future.

One such investment came in 2005 when Hi-Tech Mouldings implemented a costly Infor Visual ERP system. The ERP system is money well spent and generates a great deal of data for the business as it plans, schedules and monitors operations.

It has delivered some impressive results too: delivery lead times have come down, while overall operating costs have also fallen.

“The ERP system gives us the information more readily, and has been a great investment,” says Brown. “The number of benefits has been huge. It is fantastic.”

Focused improvement

A lot of Hi-Tech’s improvements have also been made through training. Training is crucial to Hi-Tech, which enrols staff on “NVQs and HNCs.” It also has three apprentices at the moment and “takes on undergraduates, while we also have people doing diplomas and our managers are on a key manager’s course,” says Brown.

“Training is a matter of survival,” he adds. “The more people are trained, the better the performance of the business. If you don’t train your people, don’t expect to survive. Our philosophy is that if you give your people the right toolset then they will perform. If you don’t, then how can you expect them to perform and deliver?”

Brown is also a strong believer in mentoring, which, he says helps build a “motivated workforce that understands the needs of the business.”

He also says that is it important “the people you employ and trust understand the business... If they don’t understand the direction you are going in, how can you expect them to follow you?” he adds. “We communicate the business direction to them, and as a result of that they feel involved and want to take the business forward.”

The company has big plans for the future. The Slovakian venture is very exciting and will compliment UK operations superbly.

“Are there any secrets to our success?” asks Brown. “I’m not sure. One thing is certain though, we have not been afraid to invest. Some accountants would say we shouldn’t have done some of the things we have done, but I think our results prove otherwise.

“We have got a great team too. From the board down, everyone in this business is important and treated as such. We are all cogs in a wheel, supplying a product to a customer,” he says “Business today is extremely busy,” continues Brown. “Yes we are bucking the trend, but my philosophy has always been it’s important to enjoy what you do; if you don’t enjoy what you do then you probably should be doing something else. I always get in trouble when I say we are not the finished article, but I firmly believe you can always improve. It is when you stop improving you are on the slippery slope.”

As a result, Hi-Tech Mouldings intends to continue ‘pushing the boundaries,’ manufacturing injection moulding in the UK and Slovakia by remaining a strong partner that provides cost effective solutions.