A pressings firm which diversified into the medical industry has seen its sales from a pioneering new project almost double in a year.
Black Country-based Clamason Industries has seen sales from a medical project jump to £1.5 million in the last 12 months after being boosted by seeking new markets.
The success was reached after the firm sought help from the Manufacturing Advisory Service – West Midlands (MAS-WM), and became the 3,000th to tap into the organisation’s support.
Managing director Philip Clarke said Clamason worked with specialist adviser Rodger Cooper to expand its capacity for producing the springs used in an insulin pen.
He said: “Our annual sales for this project alone have risen from £800,000 to £1.5 million over the past 12 months, with the potential for even higher turnover in the next two to three years.”
The company, which employs 100 people at its 65,000 sq ft site in Kingswinford and a further 20 at its factory in Slovakia, is set to turnover £11 million in 2010, with the possibility of taking on more staff to cope with new contracts.
Mr Clarke, whose father Bob founded the business in 1947, identified the need to diversify into new sectors after being hit by the economic downturn.
He said it takes a lot of time and money to diversify – especially when sales are volatile and market prices are diminishing – but the firm has been able to boost performance and increase productivity. We’ve had to evolve massively over the last five years and part of our success is being able to identify new opportunities and how we can transfer our core strengths and apply them to new areas,” he added.
In spite of the increase in medical sales, the automotive sector remains the biggest marketplace for the company with first tier suppliers such as Delphi and Visteon among its customers.
It currently manufactures a string of products to go into vehicles, including parts for engine control units, brackets for cabling to heat sinks and passenger safety equipment.
Techical director Paul Edwards said: “We’ve invested heavily in the new presses and other equipment to improve the service we can offer. As well as brand new projects, this has also resulted in customers transferring up to 500 sets of existing tooling to us as they either out-source their in-house manufacturing or reduce their supply base.
“This has been another area where MAS-WM has been of great assistance. In addition to having Rodger on hand as a sounding board, we have also been able to bring in industry experts to help with productivity improvements in our cells, implementing new purchasing systems and gaining new quality approvals for our growing medical range.”
The Birmingham Post reported last week that regional development agency Advantage West Midlands had cut £800,000 worth of funding for MAS-WM from its budget next year as a result of Government-enforced cuts affecting across the country.
However, the support body has managed to source European funding to make up the shortfall and Clamason has become the 3,000th company in the West Midlands to have tapped into its support.
Mr Cooper said: “We’ve been making a difference in manufacturing across the region since 2002. Our work has added a massive £500 million in total to company turnovers and more recently safeguarded over 4000 jobs.
“Our work with Clamason is a great example of how we can add value to a world class manufacturer and the benefits are there for all to see with the company winning new work and creating jobs in the Black Country.”
