A SOUTH Devon company, which manufactures high-value plastic injection moulded components, has increased its turnover by 50 per cent after implementing a new business strategy.
Hymid Multi-Shot, which is now based in Woodland Road, Torquay, has increased its competitiveness within a global supply chain and won new orders from work previously sourced in low-cost countries.
It has 30 members of staff and is on track to turnover £2.5million this year.
The company supplies the medical, instrument and measurement and electronics markets and has benefited from support from the Manufacturing Advisory Service.
Established in 1997, Hymid Multi-Shot originated from four local toolmakers and is now in its third generation of ownership. The business originated from tool making then trade moulders and now to specialist manufacturer. But in 2008, the business was facing closure.
Colin Spencer Halsey, chairman, explained: "The business embarked on a changed management process, the key success factors of which have been a willingness to change the way we do business; adopt an openness with ourselves, our people and external stakeholders and pursue a clear strategic vision and plan."
It relocated to its operating premises from three start-up units in Brixham (5,500 sq ft) to the 18,000 sq ft fit-for-purpose manufacturing space in Torquay in September last year and has gone from strength to strength.
Colin added:"We mapped out a clear, strategic vision for the business and decided on the model we wanted to adopt moving forward. It was the detail of how to plan and implement this we needed some support with.
"MAS guided us through a people, systems and processes programme, which included a lean manufacturing workshop, value stream mapping exercise and Six Sigma training. The support we received helped underpin the thought process behind the strategy we had developed and added the missing detail. Thanks in no small part to the support of MAS, we have a strong platform for continued growth and the potential to become a truly world class manufacturer."
He added: "Sales growth over the past three years has been 50 per cent. By moving the business from a labour intensive low value adding base to a knowledge higher value adding capability, the focus has been on operating margin.
"In 2008 the gross margin was less than 30 per cent. We now run in excess of 45 per cent. The financial controls and evaluation of our people, systems and processes has produced this improvement.
"We have seen our gross value added increase year-on-year (£867k for year ending 2012). Through lean manufacturing and improved processes our productivity (output per capita) has increased year on year and is now running at £85k compared to circa £30k in 2008.
"The plastic injection industry has seen some high profile casualties due to their business being one dimensional (mainly automotive) or operating a high volume, low margin model. Hymid is a high value, low volume, model, supplying B2B customers with global market products."
Speaking of the company's success, Colin added: "By changing the way we did business, Hymid has achieved a number of milestones. This journey culminated in the company being awarded the IMechE Business Development and Change Management Process in December 2012 and Beacon Company status in June 2013.
"Hymid has already embarked on an ambitious growth plan for the next five years. Having secured suitable premises it now has a world class manufacturing environment and the platform to enhance the Hymid brand as a specialist manufacturer. By 2018, our aim is for £5million turnover and a centre of excellence in twin shot injection moulding."
Phil Halse, MAS advisor for Devon, said: "Hymid Multi-Shot is a great example of a business committed to moving forward and growing. It has been very rewarding to help oversee the company's relocation and witness its capabilities increase. We look forward to working with them on more projects in the future and further developing our relationship."