A major expansion into larger premises and the launch of new services is underway at a North East specialist manufacturing supplies business as its customers capitalise on its imports from China.
Global Manufacturing Supplies Ltd, Prudhoe, is expanding into a new warehouse and starting a new assembly service after gaining backing from Yorkshire Bank’s Newcastle Financial Solutions Centre (FSC) through its Investing for Growth Initiative.
The business, based at Low Prudhoe Industrial Estate, has acquired a new 14,000 sq ft warehouse next to its current 11,000 sq ft premises for a six-figure sum as demand for its expertise in sourcing and supplying specialist engineering components from China grows.
As well as creating more storage space, the new warehouse facility will allow Global Manufacturing Supplies to launch a new service where it will assemble specialist components imported for its customers and deliver to their own customers, reducing their storage, logistics and delivery work.
Founder and managing director, Owen Ingram, says: “The current economic climate in which our customers wish to buy specialist parts as cost-effectively as possible is driving our growth and we expect to see our turnover increase from £7.9m to £10m in the current financial year.
“Our expertise enables us to source, import and store components for our customers and deliver them just in time – exactly as if they were coming direct from China. We do this in a way which maximizes the benefits of cost efficiency for our customers and eradicates the complexities of the import process because we manage it all for them.
“We are also winning work from businesses which already buy from China but wish to access our total service because we remove the hassles which can arise from not understanding the culture and other aspects of the process. This includes gaining contracts from the US parent companies of UK businesses which we support.
“Yorkshire Bank Newcastle FSC has been very helpful and has demonstrated a very forward-thinking approach, getting to really understand our business model and the need for funding at different stages.”
Global Manufacturing Supplies, which Owen Ingram founded in 1998, employs qualified manufacturing engineers. The company has 22 staff in the UK and eight in China at six offices including its Asia headquarters in Shanghai, managed by director Dave Ranson.
The company, which has audited 800 supplier businesses in China in the last five years, supplies parts including pressings, aluminium and steel castings, plastic mouldings, forgings, wire work and springs, electronics and electro-mechanical assemblies. It has customers throughout the UK and also exports to Italy, France, Germany and the US.
Yorkshire Bank Newcastle FSC business partner, David Wilson, who arranged the funding, says: “Owen Ingram has built up a very successful operation which makes importing from China far easier while remaining cost-effective. The business is set to grow and we’re pleased to be backing this expansion.”
Yorkshire Bank’s Investing for Growth initiative enables businesses to take loan repayment holidays, interest-only repayments and extended loan and credit terms so they can take advantage of quality growth opportunities. Businesses taking up the package can re-invest the cash into their operation for expansion, new staff, equipment, machinery and commercial development.
Yorkshire Bank Newcastle FSC is part of Yorkshire Bank’s North East Team which also includes Tees Valley FSC, Stockton, and comprises 70 staff working in multi-discipline teams encompassing corporate banking, private wealth management, treasury services and credit and operates a traditional method of banking with funding from deposits used to support investments in the local community.