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Cornish Engineering firm shows its mettle with help from MAS
20th May 2009
Penryn-based specialist engineers, Metal Surgery, near Falmouth, have enjoyed huge improvements to efficiency, a 20 per cent reduction in overhead costs and a 30 per cent increase in new business, thanks to the specialist advice and support from the Manufacturing Advisory Service in the South West (MAS-SW).
The Cornish business which was established almost 40 years ago provides a comprehensive range of specialist engineering services to the engineering and manufacturing sectors throughout the UK.
The firm which has a highly skilled workforce of 13 employees offers its own unique process for repairing fractured castings for engineering applications such as mining shafts, mining pulleys and marine propulsion drives, to name but a few.
Metal Surgery is also able to offer a complete in-house engineering facility for all machining and casting repairs as well as pump and valve refurbishment of all sizes and descriptions. With local businesses using the firm’s specialist skills and expertise for many years, no other workshop in Cornwall offers the breadth and depth of its skills and services.
Due to the bespoke nature of the business’ operations and the quick turnaround required on repairs to vessels and sub-contract machining, Metal Surgery’s workload can be very sporadic at times with the uncertainty leading to operational inefficiencies and spiralling costs.
The business sought the advice and support from the Manufacturing Advisory Service in a bid to increase efficiency, boost profitability, encourage regular repeat business and ultimately attract more business of a similar nature to counteract the difficulties of constantly providing bespoke solutions to a number of different clients.
Site manager, Chris Simmons, explained: “The business had a fantastic reputation for its unparalleled skills, expertise and ability to take on projects others cannot fulfil but we recognised that in order to be more profitable, operational efficiencies needed to be carefully addressed without compromising those values important to us such as our flexibility. While we were well-placed to continue to secure additional business from our core target market such as shipyards and mining organisations, we needed to take an inward look at ourselves to streamline operations and reduce costly overheads.”
MAS implemented a full review of the company’s financial position, current order book and clients as well as its internal functions and procedures such as personnel and reporting processes. Metal Surgery’s marketing and promotional materials were also assessed and the viability of having a separate sales function explored. MAS also looked at ways to maximise the use of machines and equipment with a view to increasing operational efficiencies.
MAS specialist Martyn Pearson explained: “The process we adopted could be described as a full company MOT looking at all aspects of the business’ operations and restructuring key functions such as product offering and sales and marketing in line with the needs of the market. Although the size and the nature of the business at this time could not justify a dedicated in-house sales function, we worked with a local marketing services firm to produce an effective marketing plan and promote the business throughout the region.”
Chris Simmons added: “The restructure of our sales and marketing activities alone have made a significant impact to the bottom line. New business is up almost a third (30%) and by reducing our dependence on a small number of historical clients we are now in a stronger position than ever before. In addition, by reducing our overheads by a fifth, we are creating a solid foundation to build on.”
MAS will be continuing to work with Metal Surgery as it seeks to increase its client base and secure more repeat business for lower volume machining, fabrication and assembly. Going forward, the business may also require additional machinery and equipment to fulfil new orders and will also be there to help, is there is a requirement for new staff with the skills to operate the new machinery.
Chris Simmons: “The business has turned a corner thanks to the advice and support from MAS. We are currently working on a brand new client-friendly website which will provide us with an opportunity to drive new business further and we have lots more plans in store as we look ahead to the future.”
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