MAN is delivering added value

Steve Gaston, business development director of the Midlands Assembly Network (MAN), which includes Telford-based Advanced Chemical Etching and Tenbury-based Muller Holdings, says a growing number of companies are outsourcing some of their manufacturing capabilities in a bid to reduce costs, improve efficiencies and open up capacity.

More than £3m of new projects have been taken on across the group in the last twelve months, with a number of members working together to deliver added value and new production solutions for clients in automotive, aerospace, oil and gas and renewables.

There are another six opportunities in the MAN pipeline as more businesses look at new ways of boosting their productivity.

"The 'puzzle' is probably the industry topic of the year and a lot has already been written about how to solve it – investment in automation, in skills, in systems," said Mr Gaston.

"These are all very valid. However, there has been little discussion about outsourcing, where you source a supplier to deliver your non-core manufacturing operations."

He added: "As long as the right strategic partner is chosen, this offers numerous benefits. There's less unnecessary stock and reduction in work in progress, better cash flow and significantly reduced lead times. It also gives you greater flexibility for volatile volume requirements."

The Midlands Assembly Network is a collective of eight sub-contract manufacturers and a specialist design consultancy who work together to win work.

The group, which features Advanced Chemical Etching, Alucast, Barkley Plastics, Brandauer, Grove Design, Mec Com, Muller Holdings, PP Electrical Systems and SMT Developments, employs 700 people over 12 factories and this year will smash the £70m combined turnover barrier.

It offers every mechanical, electrical and electronic engineering process, including automation, castings, control systems, etching, fabrication, injection moulding, PCB development and precision pressings.

Paul Bethell, managing director of Muller Holdings, added his support: "As a group, we have a proven track record of managing complex assemblies and supply chains – both at home and for customers in more than 20 different countries.

"MAN has the capability to take on outsourced operations as individual companies, as partnerships of two, three or four firms and we are even in advanced discussions with a renewables customer to sign a deal that will involve the entire group.

"In essence we are taking the risk out of the equation and, judging by the upturn in orders, it's a service industry is crying out for."

The Midlands Assembly Network is also working alongside associate partner Warwick Manufacturing Group to achieve even greater productivity gains.

Over the last 12 months this has included six managers completing the Innovation in Business Leadership programme, a number of process improvement projects and the introduction of 'Smart Factory' technology.

For further information, please visit www.man-group.co.uk or follow @man_group_on Twitter