Spotlight on Business: Robafoam

Robafoam are an industrial engineering firm based in Leamington Spa, Warwickshire. In this month’s blog, CW Growth Hub Account Manager for Warwick District, Laura Delahunty, speaks to Founder and Director, Robert Jones.

What does the business do?

Robafoam are specialists in the robotic application of foam seals directly to customer components. Its core business provides this as a service, using its own technology, to enable  customers to take advantage of this high-performance sealing method without the need for any capital investment. If required, Robafoam will also sell and integrate the foam systems it uses into dedicated production cells for larger volume customers.

This is a unique service in the UK and, since Robafoam was established in 2013, it has rapidly grown. It now runs 7 robot sealing cells in its production and has 1 large, dedicated laboratory system to provide samples for potential customers to evaluate the technology.

The requirement for high performance watertight seals is relevant across virtually all industries. Robafoam’s customer base reflects this and it applies seals to parts for Europe’s leading automotive companies, electronic component manufacturers, lighting manufacturers, telecoms & power distribution, construction, marine and many more.

How has the business changed over time?

Starting a new business, which offers a unique service, was challenging during the early years. Although the concept seemed simple; “free issue the parts to Robafoam and we seal and return them”, it took a number of years to build up the application base which justified the initial and then the on-going capital investment requirements. To establish and then maintain a steady and dependable customer base, which provides year on year organic growth and financial stability, also took time. We needed to ensure, through that growth, that quality and service were never compromised.

Now with as many robot cells as the electrical supply will support, across the two Leamington factory units,the operation can be likened to the old music-hall plate spinning act. With only 3 plates turning when you have 8 poles, is not very impressive or efficient. The key is to ensure 8 plates are always in the air and spinning with as few wobbles as possible and definitely no breakages!

We now have many blue-chip customers and thousands of sealing applications, so our production control methods have had to evolve, changing from excel based systems, to dedicated MRP software. As we remain a developing SME we have found the use of external specialist support, including IT, HR, and engineering partners, allows our team of 17 staff to focus on core activity.

The scale of our investments has grown to support the business development. This includes changing from basic laser measuring devices to a full-component scanning system, as used by Formula 1 teams. Not only does this give more comprehensive and accurate data, this system creates ISIR’s and PPAP Reports and basically speeds up our quality control process. It builds customer confidence in using Robafoam. Furthermore, our growth has allowed us to invest in R&D to expand into new markets such as Automotive EV component sealing, explore our own home-grown technology, and generate the companies IP.

What are the biggest challenges you've faced in the last 12 months?

Due to the world’s semiconductor shortage, 8 major plastics components for two JLR vehicle platforms required rapid redesign and introduction. One of our largest customers, who owns 5 of our foaming systems, had been nominated for this 1st tier business, however they did not have the immediate capacity to mould the part or foam it. Therefore, the parts were to be moulded and imported from China and Robafoam were asked to support the foam sealing process.

The sheer scale of this business meant introducing a full 2-shift working pattern, as this new work would monopolise 2 of our (at the time) 5 production systems. Consequently, we had to rapidly invest in 2 new robot cells, to which we could transfer existing work.

Next, we needed to employ new staff, train them, and create a mix of staff experience and skills across the 16-hour day.

Then, and perhaps the biggest challenge, was to acquire physical storage space. The parts were large plastic mouldings used in car doors. The only feasible way to accommodate this was to use 3 x XL 40ft truck trailers as mobile warehouse storage - 2 of them for incoming mouldings and 1 for outgoing. These trailers were rotated 3 times a week. (If any of our neighbours on Berrington Road are reading this, thanks for being so patient!)

To add to the pressure, the customer then asked if we could accommodate the “Firewall Quality Check” using an external contractor, ensuring the parts were ready to be delivered direct to JLR production at Halewood. Luckily, an adjacent factory unit became available, which happens very rarely, on a temporary lease basis, so we were able to accommodate this request.

Finally, as the parts from China were arriving packed in cardboard boxes, but exiting in more efficient, reusable, plastic stillages, we were left with literally 1000’s of flattened cardboard boxes and plywood pallets every week. A huge and ecologically costly problem. After some research, we found a company called Boxreuse, who were able to find new customers for these boxes so they could be reused. Collection was free, provided we had a minimum of 12 pallets stacked 2m high, which meant more warehouse space needed!

Finally, the last challenge was the conclusion of the project, which was the point at which our customer (the JLR 1st Tier) brought the business in-house and no longer had need of our services. The main issue this caused us was around our people. We are not the sort of company who hires with a short-term intent. We did have to make 2 redundancies, and 1 person left for other reasons but I’m pleased to say that, since the end of May when this occurred, we have been able to reemploy these people.    

What advice would you give to other businesses facing similar challenges?

Check and double check your costings! This project added over 25% to our annual revenue, so the desire to take it in on was intense. Be absolutely clear what is included in your quote. It’s too easy to absorb incidental costs, which erodes the reason you did it. Be strong in going back to your customer if the goal posts move. We didn’t and suffered for it. 

Consider the project finish, as much as “doing it”. Think hard how the spike in revenue and then, potentially, a fall the following year will look on your P&L. Make sure it’s explained.

Above all remember the saying “Turnover is vanity. Profit is sanity”.    

How has working with the Growth hub helped you?

The CW Growth Hub is a multifaceted benefit.

  1. I have been very fortunate to have a close relationship with my appointed account manager. It’s so important to have the benefit of someone’s opinion, whom I know to be impartial, that I trust and respect even if I don’t always agree with them. Crucially, this person makes me question the decisions I make and the plans I am considering. It might not suit everyone, but for me it works. I feel it’s best not to be arrogant enough to think you’re always right. The guidance I had through my MBO was invaluable.
  2. Making connections in both academic, technical and commercial fields.
  3. We have been lucky enough to have been awarded various grant funds to support our growth and innovation. Without which our speed of development would have been significantly affected.
  4. Training – knowledge of and access to different support packages.

What has been the biggest driver to your business success?

Focus on what you want to create. I had been involved in my industry a long time before establishing the business. I was convinced that there was a place for the business model I had in my head.

I started with a 10-year financial plan, which is now a rolling 5-year plan. Setting both budget achievement (MUST) and target achievements for the coming financial year.

Always try and consider where your potential market is and apply your resources accordingly. If something’s not working, don’t labour on flogging a dead horse - move on and try something else. Be creative in your ambition and try not to be wasteful in achieving that goal. Having the right people around you, employees and externally, is most important. Remember, the harder you work, hopefully the luckier you are.

 

Additional Information:

Website: https://www.robafoam.com

LinkedIn: https://www.linkedin.com/company/robafoam

Facebook: https://www.facebook.com/profile.php?id=100068915057891

X: https://twitter.com/Robafoam