Export success boosts Caldervale
INTERNATIONAL sales have rocketed at Yorkshire’s Caldervale Technology as it makes steps to open a new Australasian operation.
The Dewsbury firm, which manufactures tool and equipment for the installation of water and gas pipes, has seen international sales rise by 20% and is expecting to be back to pre-recession sales of £4m next year.
Caldervale, which employs 33 people and manufactures 200 products, is looking to invest more than £400,000 extending its workshop capacity and in a new office block at its Bretfield Court site.
The company’s growth follows results from the latest Manufacturing Advisory Service (MAS) Barometer, which reveals nearly half (48%) of companies from Yorkshire and the Humber questioned expect to spend more on new machinery and premises over the next six months, a 7% rise on the same period last year.
There appears to be a similar appetite for embracing new technologies with 36% of firms indicating they will fund more activity in this area and 62% of SME manufacturers reported an increase in sales in the first half of the year, with 70% predicting further growth over the next six months – a record high.
Managing director of Caldervale Technology, Gordon Lilley, said the firm has seen “massive” overseas interest in the last six months, with major projects currently underway in Chile, Russia and Australasia.
“This is where our expansion is coming from, as the UK remains relatively static. Exports now account for 60% of our turnover and I can only see this growing. The next step for us is opening a dedicated Australasian distribution and sales office and this will happen in the next six months,” he said.
David Caddle, area director for MAS, said: “Manufacturers tend to be very cautious and traditionally would need significant confidence in the long-term future to relax the purse strings.
“Encouragingly, the latest Barometer provides the clearest indication yet that companies are prepared to invest in new machinery and their premises in a bid to remain competitive and take advantage of significant opportunities both at home and abroad.
“It is a reassuring finding and appears to meet the EEF’s recent call for the sector to fund more research, innovation and export growth.
“This sense of optimism is also present when it comes to employing new staff. 41% of SMEs are planning to hire new people with a further 48% expecting to keep workforce levels the same.”
Business and energy minister, Michael Fallon, added: “These findings are the latest indication that the economy is starting to head in the right direction, as we move from rescue to recovery. It is particularly encouraging to see that confidence is returning and manufacturers are becoming more optimistic about their future growth”.
The second MAS Barometer of 2013 collected responses from 81 manufacturing SMEs across Yorkshire and the Humber, providing an overview of economic conditions and issues faced by the sector from April to June this year.
The regular quarterly special focus concentrated on finding out whether business growth could be linked to innovation.
Seventy nine per cent of respondents reported that new products introduced over the last two years had led to new sales, with 34% reporting an increase in both sales and profits. Over a third of respondents (35%) said new sales accounted for 25% or more of their total turnover.
The Barometer also revealed that the majority of respondents are fulfilling the diverse requirements of the automotive, food and drink and oil and gas sectors. Defence, marine and rail are also generating strong demand.
MAS, which is funded by the Department for Business, Innovation and Skills (BIS), works for manufacturers and can help shape strategy, create new products, reduce waste and review supply chains.
