GROWTH
VITAL
ADAPTABLE
central south mid market 15
INTERNATIONALEXPORT CHALLENGES AMBITIOUS
GLOBAL HUBS FOOTHOLD
Getting established does take time and investment. A Croydex factory in China took 18 months to gain manufacturing approval for the American market. “But it’s worth putting in the miles, effort and time because the market potential is huge,“ added McGrellis. “While Homebase in the UK may have 320 stores, Home Depot in the USA whom we deal with, has 2,200 stores. One major Chinese bathroom retailer has as many as 6,000 branded showroom outlets“.
Croydex entered the US market in 2009 but is now included nationwide in major name sales catalogues. Jason Newman was recently appointed as Croydex’s first export sales manager for some years. “Our hard work getting in store acceptance with major listings like Bunnings (Australia) and Home Depot will flow through positively this year.“
Advice to prospective international traders
“Beware people promising long, and delivering short,“ is the worldly-wise McGrellis warning.“
Are Central South MSBs ready to go global?
“The international market is ripe, but many still have to learn to harvest it properly. It takes time and is not for the faint hearted.“
BOFA: ’. . . adding value and quality to OEM offerings’
BOFA is the world leader in fume extraction technology. It operates from four manufacturing and international sales sites in Poole, Dorset, and a sales, service and distribution facility in Illinois serving North and South American markets.
It designs, develops and manufactures fume extraction solutions for industries including electronics, laser marking, printing, pharmaceutical, dental and beauty.
COSHH legislation in 1991 and the resultant compliance may have kick-started the UK market for BOFA but innovation, quality and customer service have sustained its growth internationally. “We have 65 great products,
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – MARCH 2014
but make 17,000 individual units a year to suit our customers,“ said founder Dave Cornell.
Today, 80% of BOFA sales are international to 100 countries, mainly in Europe and the USA, but increasingly to the Far East and Asia. Growing sales in the Americas are fast approaching 20% of company turnover which is now £16.5m (combined international and Americas).
In the past two years, international sales growth has required factory-space expansion at Poole and a 25% increase in staff to 160. “Our aim is steady growth. We don’t want it going off like a firework,“ said sales and marketing director Tony Lockwood.
So how has BOFA achieved this success?
From day one, Cornell has aimed to produce a best-in-class product to ensure the health and safety of operators working in hazardous conditions. Today, constant R&D (BOFA spends £500,000 per year, but claims R&D and Patent Box tax allowances), international manufacturing standards (CE, UL and CSA certification) and management systems (ISO 9001) underpin the company’s quality products.
The need for control is one reason BOFA retains its major operations inhouse, from procurement to R&D, HR to logistics, and manufacturing. It’s also why BOFA has internationally patented its technology and jealously guards its ’magic’, as Cornell calls it.
Arguably, 1994 and 2012 were also key years for BOFA.
In 1994, with UK post-COSHH sales going well, Cornell formed a working partnership with an OEM soldering iron manufacturer, and most importantly one with global trade operations. The link-up formed an international business model for BOFA – providing OEMs with added value and quality to enhance their international offerings.
Wherever the OEM sold its soldering irons, BOFA could provide fume extraction health and safety. Today, those hazardous fumes might come from laser-marking on a production line or even false teeth manufacture. The range of global opportunity for BOFA is vast, and it’s done well by channelling its products via OEM international infrastructures.
The trade-off? BOFA seldom gets branding on its products and has to maintain its quality performance to OEM standards. Also, it was necessary to set up BOFA Americas to give the company credibility in US markets.
Gaining the Queen’s Award for Enterprise in 2012 provided BOFA with helpful publicity, but importantly it also gained stronger networking links, notably through UKTI.
BOFA has always ploughed the international trade show circuit, but today it does so more effectively alongside OEMs and with professional advisory support from the UKTI – “which is one of the nation’s best kept secrets“.
Advice to prospective international traders
“You need an international network and it’s difficult to establish that on your own. We use OEM channels, and local resellers, but you have to build relationships that suit your business.“
Are Central South MSBs ready to go global?
“It’s still a daunting prospect for many, but if they are able to make the investment, have an attractive product for international markets, then absolutely they should go for it.“
The next subject of BDO’s mid-market focus will be: Growth – what’s driving it, and is it sustainable?
Details: Arbinder Chatwal 023-8088-1940
www.bdo.co.uk
If you would like to see the full list of the 20 leading mid-market companies growing globally, please contact Danielle Bishop at
danielle.bishop@
bdo.co.uk
www.businessmag.co.uk
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