Mech-Tool turnover rockets after IT upgrades

Nov 4 2009 by Iain Laing, The Journal

A DARLINGTON company has proven to be a real innovator after investing in a modern IT infrastructure which has increased turnover to £18m in just two years.

Mech-Tool Engineering invested in the new IT system to help reduce costs, improve quality and create the opportunity to move into new markets, after working closely with Teesside University to establish the best way to move their business forward.

The company has received ongoing support from Business Link since 2005, including advice and information to develop its IT system.

Business Link also worked with Mech-Tool to source funding from the North East England Investment Centre (NEEIC) towards training in the new system, as well as support towards sales and marketing projects to help the business gain greater exposure with existing and potential clients.

Keith Bell, managing director at the 40-year-old engineering company, which specialises in solutions which protect people and equipment from explosion, fire and noise hazards, said: “Although our turnover was around £7m, our profitability, and in fact our turnover, wasn’t increasing year on year, so we decided to move the company into three profit centres – modular products, acoustics products and fire and blast wall products to improve productivity and efficiency throughout the business.”

By integrating and connecting the IT systems, Mech-Tool Engineering was able to cut out the occurrences of errors, almost down to zero.

Keith added: “We now have a much more efficient way of working and our turnover increased to £18m in two years, while our workforce has increased from 100 to 155.

“This wouldn’t have been possible without the support we received from Business Link.”

Mech-Tool Engineering is now looking to make improvements to the manufacturing control system and to make inroads into the nuclear industry.

Business Link adviser Suzanne Henty said: “It is refreshing that even in the current economic climate companies like Mech-Tool Engineering are embracing innovation and exploiting new ideas and demonstrating success as a result.”

Businesses who want to become more innovative can access support by calling Business Link on 0845 600 9 006 or visiting www.businesslink.gov.uk