At a time when manufacturing exports are approaching stagnation, one UK manufacturer of garden tools is bucking the trend after investing in temporary storage space in order to respond to surging demand from the export market.
Husqvarna UK has significantly increased production at its factory in Newton Aycliffe and invested in temporary storage space from Spaciotempo in order to continue to deliver goods directly to warehouses, just-in-time, for the export market. The building, which was installed in a matter of weeks and is 85 by 12 metres in length, and 6 metres high, has provided Husqvarna UK with more than 1,000 square metres of additional storage space to hold a considerably increased number of components ready for manufacture for customers overseas.
Joe Storey, Facilities Manager at Husqvarna UK, explained how the company’s production model enables it to have a successful export strategy, and why temporary solutions provided by Spaciotempo are key in helping the business keep its production schedules responsive.
“As a manufacturer we do have a standard range of products, but what separates us from our competitors is our ability to manufacture our products reactively, in line with demands from multiple different markets. Although we do have seasonal demand periods, we have found over the last few years that demand is increasing, particularly from the export market.
“Part of our service offering is just-in-time deliveries to anywhere in the world so being able to fall back on temporary storage facilities during periods of exceptionally high demand enables us to effectively store components for more intense production runs as and when we need to.”
Husqvarna UK’s export success story is made all the more impressive considering that the latest British Chambers of Commerce Quarterly Economic Survey revealed that UK manufacturing export sales have fallen well below their pre-recession peak in 2007, and following the EEF’s decision to downgrade its growth forecast for exports at the end of 2015. Key to Husqvarna’s success in overseas markets is its new automatic lawnmower range, an innovation of which 99% of assembled products are shipped for export.
Scott Jameson, Managing Director of Spaciotempo believes that temporary storage and production facilities can be a key enabler of a successful export strategy, and is urging manufacturing businesses to look beyond current industry figures and adopt a mind-set for growth.
He commented: “Although output and export forecasts look poor for UK manufacturing businesses, it’s likely that many are already starting to take advantage of low inflation and declining levels of interest to invest in more plant and machinery to improve productivity for the long term. When preparing for periods of higher demand, manufacturers also need to consider where this equipment will be held, how they will quickly access components for production and even where they will store standardised product ranges following manufacture, prior to receiving orders.
“Temporary facilities are both more cost effective and quicker to install than permanent options and more importantly, can be taken down just as quickly to help manufacturers respond quickly to demand increases.”