Birmingham manufacturing company HydraPower-dynamics has introduced overtime and some weekend working in order to meet its expanding order book.

Business is 20 per cent up on the same period last year and the company, based in Ladywood, is considering investment in new equipment and technology as part of an expansion plan.

HydraPower-dynamics, which manufactures hose and tube assemblies, surface coating equipment and aircraft test equipment, is capitalising on the shift in business away from India and China, where concerns about the quality of output are prompting companies to look at traditional markets where quality standards are far higher.

As a sign of the company’s confidence a new sales person has been recently appointed to capitalise on the market potential as it begins to swing back to the West.

Managing director Patrick Browne said: “It is very strange but we have had our best two years of business in periods of recession.

“The business was started in a recession and the small sales team was told then by the chairman Alan Woodfield that the recession did not exist as far as the company was concerned. That’s still our thinking today 25 years on.”

Mr Browne said the firm, which employs 100 people and has a turnover of £8 million, was now firmly focused on its expansion plans and was reviewing more investment in new machinery at a capital cost of between £100,000 and £200,000.

“The main part of our business is tube manipulation but other parts of the operation are keeping pace and there has been no reduction. We are exceeding our targets,” said Mr Browne.

He said he was surprised and disappointed at talk of a looming recession and believed many were talking their way into one.

“I know they [the British Chambers of Commerce] want the government to do things but to put it as they did caused people to be fearful of investing and spending. I speak to a lot of people and they all seem quite busy,” said Mr Browne.

“We should not start talking about recessions when we have not seen it in the manufacturing sector.”

He said HydraPower-dynamics was winning automotive-related orders from Germany and France for fuel system pipes fitted to engines and also for pipes to control exhaust emissions.

Mr Browne said the surface coating business – Hydrapower Dynamics (Staffs) at Aldridge – would soon have a full order book and the strong indication was that companies were still investing in new plant.