Be the very best if you want to compete

Dec 5 2007 by Chris Knox, The Journal

A MANUFACTURERER of cast rolls for the metal industry is warning UK manufacturers that they have to concentrate on improving the quality of their output if they want to compete with Asian competitors.

Gateshead-based Davy Roll believes that many UK manufacturers are fighting a losing battle by trying to compete with Chinese businesses on price and that the only way they can survive is to invest in improving their operations.

The business, which made £48m this year, is currently undertaking such improvements and hopes that its current five-year investment plan will help grow its turnover towards the £60m mark during the period.

The company’s fortunes improved in recent years after tapping into new international markets and adopting lean manufacturing techniques.

This lead to it obtaining the Queen’s Award for Enterprise earlier this year.

However, managing director Steve Bell is not resting on his laurels and is aware that the company needs to continue improving its output.

He said: “Manufacturers throughout the UK, not just in the North-East, have to admit that they can not compete with the Chinese on price.

“Although they have far lower rates of pay for their workers, many Asian operations also use cheaper materials and it is in this area that UK businesses can compete. We are making rolls from top of the range material so that their complexity becomes a major selling point. This is the only way we can take on the low cost suppliers.”

The firm plans to grow its 292 strong workforce by more than 20 by the end of next year as well as investing in its factory operations, including the addition of new furnace equipment. The company, which has been based on the same site in Gateshead since 1840, makes iron and steel cast rolls up to 55 tonnes finished weight and has managed to create an £82m order book as well as treble its sales within a four year period. It exports to 37 countries.