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SOUTHERN MANUFACTURING


100 TM


Magal Engineering Group


Successfully keeping cool and calm under pressure


What makes your company so successful? ”Quick response and customer focus,” came the quick response from Gamil Magal, owner and CEO of Magal Engineering,


He explained this major attribute by recounting how in 2006 the fledgling Magal business finally knocked doors loud and long enough to pitch for work with a leading prestige automotive marque.


Other companies had been given six months to develop and quote to manufacture a complex cooling component for a new engine. Magal was given two weeks.


”I encourage quick reactivity and my managers know they can always talk to me about well-considered business opportunities, however risky. I‘ve never burnt my fingers yet.”


Such speedy customer service, professional expertise and innovation does not go unnoticed. Soon other customer doors were opening for Magal Engineering. However, speed is not the only major attribute of the Magal Group, which today comprises two manufacturing divisions (automotive and non- automotive), which operate in the UK (three locations), Europe (five), Asia (two), and USA.


SPOTLIGHT


Southern Manufacturing 100 – Number 26 Turnover: £87+ million Staff: 1,015 (440 in UK)


Trading: B2B, supply of manufactured automotive thermal management systems and control components Head Office: Woodley, Reading


Magal Engineering is a global automotive strategic supplier to major internationally-linked original equipment manufacturers (OEMs), and has preferred supplier status with Ford, Daimler, Jaguar Land Rover, Renault Nissan and PSA


people are thinking. I can give advice, warnings, can plan and deliver engineering solutions.”


Certainly, Magal is an industry- recognised and proven business turnaround specialist. When he led the MBO of Adwest Engineering in Reading in 2002 it was losing £3 million a year. By 2003, Magal and his MBO colleagues David Woolford and Kevin Lowen had turned Adwest into a profitable company.


During 2003, Adwest prospered and bought its parent, international group Dura Automotive, which was losing £30m per year. By 2004, the Magal trio had moved Dura into profit within the renamed Magal Engineering Group. Magal continued to thrive, acquiring complementary companies, constructing new facilities in India. Then the worldwide recession hit.


Company finances were exposed, but with strong customer-focused restructuring, four-day working, and its much-improved production efficiency, Magal Engineering survived. By 2009/10 it was back making alliances and acquisitions, launching in Turkey and China to support OEM client operations.


Gamil Magal holds one of his company‘s automotive thermal management components


Not only did it produce a working prototype to the client‘s specifications, but Magal also proved the inefficiency of competitor- proposed components, then created a superior prototype below the target cost.


”The client was so impressed, they gave us 100% of the project from design to manufacture, and told us they‘d never done that with any company before,” Magal proudly stated.


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Magal himself is a key reason for the Group‘s success – ironically, probably assisted by his dyslexia.


He finds reading a chore, prefers talking to people, resolving his queries personally. In doing so, he absorbs varied information, approaches challenges directly, differently to other managers. Plus, he has a competitive edge.


”I have this gift to see three to four steps ahead from where other


Magal Engineering is a 21st century turnaround success story – as evidenced by the many industry awards it has gained.


So how do you turnaround a failing business? Magal‘s lean management principles are based on efficiency of operations, effective use of capital, underpinned by a talented empowered workforce.


Understanding the cash input that underlies every business output achieved – especially wasted output – is key, he says, but creating visible leadership, open communication, a workforce with professional pride and passion, are vital too.


A right-first-time culture means just that from administration operations to product quality. Magal no longer carries excessive inventory and has greatly diminished its production and overhead costs.


”We are lean management experts and not just on the shopfloor. We investigate and resolve all inefficiency throughout our company.”


Magal fully checks and assesses procedures before considering alternative technological efficiencies. ”Computers can aid success, but only if they are used properly.”


He strongly believes that employees need personal confidence, a chance to learn, to improve their skills and experience. ”Beating people on the head to meet targets does not help them achieve them.”


Apprenticeship, work experience, post-grad and management development programmes are standard within Magal, which also funds employee external studies.


Personally, Magal aims to be an even-handed leader – open-minded, fair and approachable yet expecting constructive input, commitment, honesty and loyalty from his workforce. ”I still try to run the Magal Group like a family business.”


Magal also believes in face-to face business, and regularly travels worldwide having meetings with OEMs, suppliers and management teams – ”… and people on the shopfloor”. Group communication cascades down, and up.


”In conference calls you only hear what you are told. When you meet regularly there is clear understanding that everything is what it is.”


Like the thermostats it manufactures, Magal Engineering works calmly under pressure, reliably and efficiently producing a high-standard performance. It monitors and controls what it can – decides its own destiny.


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – FEBRUARY 2016


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