British manufacturing is alive and well

Cameras dot the corners and crevices at Lyncolec’s factory in Dorset. As computer-controlled machines piece together complex circuit boards destined for the aerospace industry, someone is watching 24 hours a day: the customer.

Over the past two years Lyncolec has invested about £800,000 to let its clients track their orders at every stage of manufacture. Using web cameras, they can peer over workers’ shoulders. Bar codes and electronic tags allow them to monitor progress in detail.

Such innovations have kept Lyncolec ahead in a highly competitive global market. Turnover at the 78-man company reached £3m last year, profits quadrupled between 2005 and 2006 and prospects for growth look good.

“Manufacturing is perceived to be dying out in England. It is not,” said Nigel Rogers, managing director and owner. “You just have to offer something others can’t do. Bespoke, technology-driven aerospace parts are our thing.”

Rumours of the death of British engineering and manufacturing may have been greatly exaggerated. A report by the EEF trade body in September identified an industry in rude health with solid order books, rising staff numbers and plans for further investment.

The south-west of England, home to Lyncolec and much of Britain’s aerospace industry, is no different.

Meggitt, whose products include engine monitoring systems for Rolls-Royce and GE, and Cobham, famous for inflight refuelling technology, have had significant underlying sales growth on the back of strong military and civilian aircraft spending. Both companies are bullish about the future.

Beneath the top tier of listed aerospace companies, though, many smaller specialist firms have benefited.

“In aerospace history there have been few times when there were as many major projects going on,” said Howard Chesterton, executive director of the West of England Aerospace Forum. “It is a good time to be a small or medium-sized enterprise.”

Tods, which makes composite materials for boats, submarines and aeroplanes, employs 140 people at its plants in Crewkerne, Somerset, and Weymouth, Dorset. This year the company expects turnover of £15m (£10m), boosted by new contracts to supply aircraft seating structures in Boeing and Airbus planes.

“In the aerospace composite materials division, business has absolutely rocketed,” said Tom Hitchings, division director. “We are doing twice as much business as last year.” The company predicts turnover of £18m next year.

Darchem Insulation, part of the US-based Esterline Technologies, has found a niche in the global marketplace providing heat solution services to the automotive and aerospace industries. Many of the 150 or so employees at its Gloucester factory are working on a contract to provide wing duct insulation for the Airbus A380 superjumbo.

As Airbus ramps up production, Darchem hopes its share of parts orders will increase, said Geoff Scott, works manager.

Not everyone can afford the level of research and development investment needed to stay ahead, said Mr Rogers. “We [Lyncolec] are a profitable company so we can afford to keep our heads up and look where we want to go. Other companies have their heads down, just trying to survive.”

Source: J. Lemer - Financial Times

To find out how your company can successfully compete for procurement opportunities with the UK MOD, European defence ministries and prime contractors, contact Jeffrey Strategic.