Innovation in action
BUSINESS Link has put a real emphasis on innovation over the past year, helping North East companies to explore ways of adopting inventive new practices that will lead to improved results.
A Darlington based engineering company has proved that by investing in modern IT systems, businesses can stay ahead of the competition and increase their profitability.
Mech-Tool Engineering, a 40-year- old business that provides solutions to protect people and equipment from explosion, fire and noise hazards, is one company that has embraced innovation and is now reaping the benefits. The company has invested in modern IT systems to aid in reducing costs, improving quality and creating the opportunity to move into new markets.
Keith Bell, managing director at Mech-Tool said: “We were turning over around £7m but our turnover and profitability was not increasing year on year, so it was decided that we move the company into business unit profit centres – modular products, acoustics products and fire and blast wall products.”
By integrating and connecting the IT systems of the business, Keith was able to cut out the occurrences of errors, almost down to zero. The new system makes it easy for staff to set up the machinery and has led to a much more cost-effective way of working which has ultimately led to increased profitability.
Keith explained: “Following the improvements on the IT systems, we now have a more efficient way of working and our turnover increased to £18m in 2008/2009 and £17m in 2009/2010, while our workforce has increased from 100 to 155.
“The company has gone from strength to strength and this would not have been possible without the support we received from Business Link through the restructure in areas including expanding our skills base and marketing.”
Keith is now looking at the manufacturing control system, where he hopes to fully automate the process and connect it to the other business systems. Mech-Tool Engineering is also looking to break in to the nuclear industry market.
Another company that has experienced the benefits of innovating is FiFieFoFum, an art gallery based near Corbridge in Northumberland.
Roy Sturgeon, who co-owns the gallery with wife Sue Moffitt, demonstrated innovation when he embraced the internet to reach out to customers and artists alike, encouraging both to use the gallery.
He said: “Being based in rural Northumberland, there is limited opportunity for the gallery to attract any passing trade. We soon realised that developing a website was crucial to generating more business and would give us the freedom to showcase the gallery and artists to a wide range of people from the North East and beyond.”
He then saw an opportunity to start generating revenue from the site, by developing it into an e-commerce platform. The site has continued to evolve and develop with additions such as blogs, enabling visitors to interact with the business and a diverse range of products. It has also opened up opportunities to reach new markets.
Rather than increasing the size of the FiFieFoFum premises or moving to a different place, it’s online where Roy sees the future of the business.
He added: “The website now generates 25% of FiFieFoFum’s business and has enabled us to keep four jobs going. Trade in the gallery is seasonal, so the e-commerce site keeps us going throughout the year and it has even opened up opportunities for us within the US market.
“Business Link has provided helpful advice and helped us access a range of support throughout the project.”
Business Link adviser Hina Joshi is encouraged by the number of North East businesses, like FiFieFoFum who are embracing innovation and demonstrating success as a result.
Hina said: “At Business Link we recognise that increasing innovation in North East England is crucial to the region’s long-term prosperity. We have continued to strengthen our commitment to encouraging and providing support to businesses to help them to successfully exploit new ideas. Business Link advisers will be working with the region’s businesses to identify where innovative practices could improve their company.
“Innovative businesses aren’t just the ones that come up with world- changing inventions. Any business that does something new or different to improve its bottom line justifies being labelled as innovative.
“Encouraging innovation and maximising its potential will both help to develop new areas of opportunity and also protect and reinforce those areas in which the region already excels.”
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