Contracts Engineering

A Message from Lord Pickles and Lord Blunkett, followed by Contracts Engineering's best practice article

The ability to listen and learn from one another has always been vital in parliament, in business and in most aspects of daily life. But at this particular moment in time, as national and global events continue to reiterate, it is uncommonly crucial that we forge new channels of communication and reinforce existing ones. The following article from Contracts Engineering is an attempt to do just that. We would welcome your thoughts on this or any other Parliamentary Review article.

Blunkett signature Rt Hon The Lord David Blunkett
Pickles signature Rt Hon The Lord Eric Pickles

www.contractsengineering.com

47CONTRACTS ENGINEERING |
BEST PRACTICE REPRESENTATIVE 2018
Troy and Catherine Barratt
own and manage Contracts
Engineering Ltd
From prototype and value
engineering to batch manufacture
In 2012, Troy and Catherine Barratt purchased a small
and steady 20-year-old precision engineering business in
Sittingbourne, Kent, and concentrated on the compelling
growth opportunities they could see. With significant annual
investment and capital expenditure, they have turned
Contracts Engineering Ltd around, increased turnover
two and half times and now employ 32 people. Contracts
Engineering’s recent success is testament to a two-part
thesis that Troy and Catherine operate by: they believe that
manufacturing is coming back to the UK, and that bringing
an unprecedented professionalism and focus on investment
to companies within the industry provides significant
opportunityfor growth.
After the initial period of investment and reorganisation, the company has reached
a place where it is two and a half times the size it was six years ago, and now has
a strong professional management team. We are now at a point where we are
prepared for further accelerated growth.
Our work is primarily grounded in sheet steel and aluminium design support,
fabrication, manufacture, assembly and packaging. The range of our
manufacturing includes street furniture, supermarket checkouts, hard landscaping,
industrial machinery, food-processing machinery and construction-related products.
We service both high-volume batch manufacture and high-specification project-
basedwork.
FACTS ABOUT
CONTRACTS ENGINEERING
»Co-owners: Troy and
Catherine Barratt
»Established in 1989, with new
ownership in 2012
»Based in Sittingbourne, Kent
»Services provided: Design,
support, manufacture,
fabrication and assembly of
steel and aluminium products
»No. of employees: 32
»Accreditations: ISO 9001:2015
»Member of EEF, including
regional advisory board
and the economic policy
committee
Contracts Engineering
THE PARLIAMENTARY REVIEW
Highlighting best practice
48 | CONTRACTS ENGINEERING
»EXTRA FACTS
»2.5x increase in turnover
»3.0x increase in operating
profit
»Operating profit margin up
2.5 per cent
»50 per cent increase in
workforce
»Doubled shifts resulting in
16 hours of production a
day
ȣ650,000 invested in
machinery, software and
training
»Customer-focused key
performance indicators
Quality, delivery,
communication and investment
Our company-level key performance
indicators (KPIs) are entirely focused
on customer satisfaction; specifically
they are minimising external quality
control issues and maximising on-
time-in-full (OTIF) delivery. We have
increased our OTIF by over 35 per cent
since acquisition, and we now have
fewer quality issues a year even though
we are two and a half times larger.
Bringing a professional approach and
mindset to the company has been
beneficial – delivering the right product
on time goes a long way to ensuring
strong relationships withcustomers.
This is no easy feat, however, and
we have invested over £650,000 in
the business to support our strategy.
New machinery, ERP and CAD/
CAM software has enabled us to
deliver effectively, efficiently and
professionally for large-scale projects.
Our largest single investment has
been in a fibre-optic laser cutting
machine which we bought in 2017
to replace an old model. This reduced
electricity requirements by 70 per cent
and regularly runs 24 hours a day,
shortening lead times. We have also
increased laser utilisation by 25 per
cent since 2012. In 2015, we achieved
ISO 9001 status and recently extended
our scope to include designsupport.
As part of this process, we have also
invested £75,000 in software and
training. Our employees are a huge
part of our success; getting the right
people and focusing on their training
and development is one of the most
important factors contributing to our
success. We are running our third
training programme, having focused
last year on lean manufacturing.
This year, four members of staff are
studying for their NVQ in leadership
and management, and our operations
director, Ross Campbell, is studying for
his level 5 diploma in management.
At the beginning of this year, we
introduced a firm-wide employee
profit share programme.Our profit
share programme is tied to our KPIs
and operating profit, so we are all
aligned with meeting customers’
needs to ensure the long-term success
of our business. Ross Campbell has
been instrumental to our success
and oversees all purchasing and
production. We are also fortunate
to have an active and engaged
investing non-executive chairman,
Mike Blenkinsop, who was previously
CEO of a 170 million turnover
engineeringbusiness.
Investment in state-of-the-art fibre-
optic laser cutting machine
Stainless steel food-
processing machinery
Our company-
level KPIs are
entirely
focused on
customer
satisfaction
49CONTRACTS ENGINEERING |
BEST PRACTICE REPRESENTATIVE 2018
Partnerships with customers
With our commercial background, Troy
from private equity and myself from
commercial sales and strategy, we
place a real focus on strategic business
development. We receive customer
referrals and actively look for new
customers to ensure steady expansion.
We have developed deep partnerships
with our existing customers, too: we
join them for meetings with their
clients, invest in new machinery to
support their sales growth and, in
many cases, we ship directly to their
clients using our customers’ packaging
and forms. We have become fully
integrated into many of our customers’
supply chains.
In early 2017, we purchased equity
in one key customer. Since that
investment, we have supported their
growth by increasing production
capacity, developing a detailed
business development strategy
and working with them on future
capitalinvestment.
We are starting to see manufacturing
making a return to British soil. We have
been able to demonstrate that, with
volume, we can get close to prices
offered overseas, while providing
higher quality and shorter turnaround
times across the board. Reshoring
will be a particular area of focus for
futuregrowth.
Landscape of uncertainty
The drop in the pound following
Brexit has helped us win work from
Asian and European competitors; the
important thing for us, however, is
zero-tariff trading with the European
Union. While our customers are all
UK-based, a large number export and
the EU remains by far their largest
exportmarket.
Moving forward, we aim to remain
well informed during this uncertain
situation. Membership of the EEF and
its economic policy committee has thus
far provided great value and insight
into Brexit, along with other key issues
affectingmanufacturing.
Upward trajectory
We are so proud of Contracts
Engineering’s journey thus far. We
have a wonderful team of highly
skilled, engaged and motivated staff
who fabricate and manufacture
products for a growing and varied
customer base. We are achieving
our original thesis: we are part
of the predicted return of British
manufacturing and have focused
on the customer, which has in turn
brought success and growth.
Going forward, we are concentrating
on maintaining this upward
trajectory. Building on the successful
foundation we have created since
buying Contracts Engineering in late
2012, we are preparing for a period
of annual double-digit growth. We
plan to move into a larger factory in
2019, establish more partnerships
with our customers and focus on
further reshoring manufacturing
opportunities.
We have
become fully
integrated
into many of
our customers’
supply chains
Advanced welding
equipment has
increased welding
capacity and
shortened lead times
We invest in machinery
to support customer
requirements

www.contractsengineering.com

This article was sponsored by Contracts Engineering. The Parliamentary Review is wholly funded by the representatives who write for it. The publication in which this article originally appeared contained the following foreword from Rt Hon Kwasi Kwarteng.

Rt Hon Kwasi Kwarteng's Foreword For The Parliamentary Review

By Rt Hon Kwasi Kwarteng

This year’s Parliamentary Review reflects on a tumultuous and extraordinary year, globally and nationally. As well as being an MP, I am a keen student of history, and I am conscious that 2020 would mark the end of an era. It will be remembered as the year in which we concluded Brexit negotiations and finally left the European Union. Above all, it will be remembered as the year of Covid-19.

In our fight against the pandemic, I am delighted that our vaccination programme is beginning to turn the tide – and I pay tribute to the British businesses, scientists and all those who have helped us to achieve this. But the virus has dealt enormous damage, and we now have a duty to rebuild our economy.

We must ensure that businesses are protected. We have made more than £350 billion available to that end, with grants, business rates relief and our furlough scheme supporting more than 11 million people and jobs in every corner of the country, maintaining livelihoods while easing the pressure on employers. The next step is to work with business to build back better and greener, putting the net zero carbon challenge at the heart of our recovery. This is a complex undertaking, but one which I hope will be recognised as a once in a lifetime opportunity.

Through the prime minister’s ten point plan for a green industrial revolution, we can level up every region of the UK, supporting 250,000 green jobs while we accelerate our progress towards net zero carbon emissions.

With our commitment to raise R&D spending to 2.4% of GDP and the creation of the Advanced Research & Invention Agency, we are empowering our fantastic researchers to take on groundbreaking research, delivering funding with flexibility and speed. With this approach, innovators will be able to work with our traditional industrial heartlands to explore new technologies, and design and manufacture the products on which the future will be built – ready for export around the globe.

And I believe trade will flourish. We are a leading nation in the fight against climate change. As the host of COP26 this year, we have an incredible opportunity to market our low-carbon products and expertise. Our departure from the EU gives us the chance to be a champion of truly global free trade; we have already signed trade deals with more than 60 countries around the world.

As we turn the page and leave 2020 behind, I am excited about the new chapter which Britain is now writing for itself, and for the opportunities which lie ahead of us.
Rt Hon Kwasi Kwarteng
Secretary of State for Business, Energy and Industrial Strategy