Warwick Manufacturer Expansion Plans Bolstered by Growth Hub Support

Fozmula, which is based at Tachbrook Park, employs around 50 staff and turns over £5 million designing and making sensors for a range of vehicles and machines – from power generators to diesel engines. The company was established in 1977 and moved to its current site four years ago with plans to expand its operation there.

The Plan

By 2019, Fozmula wants to double turnover to £10 million and is looking to extend its property to make space for new staff and new equipment by that time too. In order to do that, the firm is looking to exploit new markets and also increase efficiency in its own way of working.

Fozmula approached the Growth Hub for support as it was in the process of securing a new contract with an existing customer from the United States and also to reshore the manufacturing of certain parts from China. The company wanted to find out if there was any grant funding available that could help to purchase a machine that would help to fulfil the US contract and also if it could assist with brokering a partnership with a company that could make the parts it wanted to reshore.

The Results

Fozmula has been introduced to a supplier firm in Stourbridge in the West Midlands. It is now working with the company and that will improve the lead times and the quality of the components.

Also, after help from Jaymie Thakordas, a Coventry and Warwickshire Growth Hub account manager, Fozmula is now also close to starting work on the lucrative contract with its American client but had only been considered when its products could be marked with more information – such as serial, part and customer numbers.

In order to do that, the company had to purchase a £30,000 laser marking machine – a Scorpion II EMS300 and, through the Growth Hub, applied for and received £22,000 via Coventry City Council.

Roland Smythe, of Fozmula, said: “The work with our American customer will begin very soon and that could lead to us making an additional 60,000 units a year for this customer alone. “The amount of information they required on each part meant it would have been too time-consuming to do it all by hand, so the new machine was vital if we wanted to deliver that contract.

“The great news for us is that not only was it necessary for that particular job, we are seeing the benefits on a range of other products too. We used to stick labels onto one particular item which cost us more than 40p per sticker – now all of that can be done with the new piece of equipment.

“We haven’t had chance to work out exactly how much money and time it is going to save us but we are confident it will run into thousands of pounds.

“We are extremely grateful for the support the Growth Hub has given us. It’s helped to accelerate our growth plans.”

Jaymie said Fozmula had taken the right steps to push for continued growth.

She said: “Fozmula is a forward-thinking manufacturer with very exciting plans to expand its business.

“Reshoring some of its supply chain back to the UK will help to improve lead times and quality and is, obviously, positive news for the regional economy. “In terms of investing in the new equipment, it’s been great to be able to support that and to see the real difference it will make to the business.

 “From that point of view, we’d urge any businesses in the area that are looking for support in their expansion to get in touch and we will be able to lever in any assistance available from both the public and private sector.”