January 15, 2015 Advanced Manufacturing Supply Chain Initiative (AMSCI), Case Studies Toolspec – as the name suggests – began as a toolmaking company employing 55 toolmakers and five employees hand-bending tubular components. But it has re-invented itself over the past 25 years, to become an expert producer of not just tubular parts, but virtually any kind of hollow section ‘road to roof’ assembly for the automotive, construction and agricultural industries. In the late 1980s though, Toolspec was in trouble and needed to change; its only customer, GM Vauxhall began sourcing tooling needs on the global market rather than from local suppliers. “So the headcount is now reversed – we have 55 people making tube components and five toolmakers,” explained Toolspec CEO Mark Blythe. “But the latter are still key, because we can make the jigs, fixtures and so on that have enabled us to progress from making simple tubular products to complex ones, while boosting quality and response time, and those toolmakers are also more productive thanks to modern technology.” This ‘can do’ attitude and ambition to get better and faster is the essence of the Toolspec success story and why it sought AMSCI funding towards a £837k capital investment towards future growth. The UK engineering sector is under-valued. We are brilliant at complex engineering in this country, but the manufacturing has often ended up being done somewhere else. Now it’s coming back. At Toolspec, we are very good at the engineering ability between different processes involved in a complex fabrication, and the AMSCI funding has enhanced our strength and reliability, and speed of response – we can generate a prototype in a couple of days. We will soon compete with rivals turning over £50m+ a year, while retaining the flexibility and response-time of a smaller concern – we never want to lose our nimbleness” Mark Blythe, CEO, Toolspec Funding itself was achieved with the sponsorship of JCB, one of several blue chip Toolspec customers. Mark Blythe said: “We couldn’t have done it without JCB submitting a bid for the AMSCI funding on our behalf – as a small firm we can’t justify that expertise on the payroll. “But the 10% £87K grant aid towards our capital expenditure will create nine jobs and, by taking on the SMMT training skillset over the next few years, improving the talent in our business and boosting productivity, quality and all the other hallmarks needed in a fast-moving competitive sector. “We’ve also taken on younger people who can quickly familiarise with the Windows-based interface on our newest equipment, while experienced guys are re-deployed, speeding processes and products on other machines.” Toolspec benefits from AMSCI Maintain ability to retain and add to a roster of blue chip customers, such as JCB, Jaguar Land Rover, and CAT – sales expected to rise at least 14% over next year Landed new export order, with potential to tap into up to £2 million further business Reduced waste and production lead times Current 60-strong headcount secured and nine new jobs created Company now ‘punches above its weight’ in a competitive market Underpins recent onsite expansion, increasing space by around two-thirds to 50,000 sq feet Mark knows about bringing in new blood: a local boy from Luton, he joined Toolspec 28 years ago as an apprentice toolmaker, rising rapidly to become Manufacturing Director at 24 and CEO seven years ago. “That means there is nothing I don’t understand about what we make and do and I’m looking for more young people to build the company’s future,” he said, adding: “Part of the AMCSI investment also went towards a machining centre, which means that we can go CADCAM there. We always CAD-designed the tooling, but then had to reverse engineer that onto a drawing. “We make most of our own tooling too, rather than often having to ask a customer to fund the bending tools for a job before At a cost of £3-7,000 per set it could be a deal breaker. Now we can cut a set of tools for a new customer within two days, saving costs and a 6-8-week lead time.” The benefits of AMSCI funding and OEM support has been vital to the success of companies throughout the supply chain being able to produce high calibre components to achieve the continuing growth of the UK Automotive sector. Dr Chris Owen, CEO SMMT Industry Forum Ltd But the biggest investment unlocked by the AMSCI funding is three new machines: two hi-tech bending machines from fellow UK firm Unison and a machining centre, costing £370k in total. “The bending machines are the biggest revelation,” said Mark. “They speed up the whole process and cut out most of the waste through measurable accuracy and quality. “It allows us to make things better, quicker, faster and hunt down better contracts. We’re also more of a ‘one-stop shop’ making ever more complex components.” About Toolspec Toolspec – founded in 1961 – is a medium volume manufacturer of specialised tubular and hollow section manipulations used in complex components and welded assemblies for the automotive, construction and agricultural industries Production volume ranges from 10 to 1,500 parts per week – due to increase markedly following nearly £1m investment and two-thirds site expansion Employs 60 people at its works in Luton, Bedfordshire Annual turnover: £6.5 million (2013). Phenomenal growth since a recession ‘low’ of £3.5m turnover in 2010, and now targeting £10m by 2015-end Array of quality hallmarks includes TS16949 and accreditation from Jaguar Land Rover JLRQ and Ford Q1 About the Automotive Council The Automotive Council provides an advisory and consultative forum for government and the automotive industry in the UK, to ensure a sustained high level conversation with the industry, and to put in place a long-term strategic framework for its development Advanced Manufacturing Supply Chain Initiative (AMSCI) Secretary of State for Business, Innovation and Skills Vince Cable launched the Advanced Manufacturing Supply Chain Initiative (AMSCI) in 2011. AMSCI provides funding across manufacturing to support research and development, skills training and capital investment to improve the UK’s advanced manufacturing supply chains global competitiveness and encourage major new suppliers to locate in the UK. More Information If you would like to know how AMSCI funding could benefit your organisation please contact Mike Scull at SMMT Industry Forum on 0121 717 6600 Download Case Study
July 8, 2014 Advanced Manufacturing Supply Chain Initiative (AMSCI), Case Studies With 1.5 million vehicles and 2.5 million engines produced each year, the automotive industry is a leading sector in the UK economy, and Delphi Automotive a key member of its supply chain. The manufacturer boasts an annual turnover of £9.8 ($16.5) billion, and its subsidiary company, Delphi Diesel Systems, is a key supplier of diesel common rail systems to global vehicle and engine manufacturers. The Delphi group has played a large role in automotive’s recent success story. Delphi is also a notable employer in the UK, operating seven sites (among them two technical centres: Gillingham in Medway, Kent and Park Royal, London) and employing 3,500 employees of which 650 are engineers and technicians. Delphi sites in the UK currently employ over 80 apprentices. The Medway area ranks amongst the most deprived areas in the UK, with education and skills the most widespread factor. In an area where 13,800 are unemployed and 35,800 experience income deprivation, Delphi’s presence is strongly felt. (State of Medway Report January 2012) “The contribution of the AMSCI funding is a key investment to develop advanced Common Rail system technologies for commercial vehicle engines that will help OEMs meet evolving legislative requirements. The funding will contribute to Delphi continuing to lead development of Diesel systems for commercial vehicles” Steve Gregory, Heavy Duty product Line Executive, Delphi Diesel Systems With tighter requirements on fuel consumption and CO2 emissions brought about by legislation and industry competitiveness, OEMs have recently looked to their suppliers for solutions. In a highly competitive automotive market, it is vital for companies like Delphi to invest in developing new technologies. Delphi bid for, and won, funding from the Department of Business, Innovation and Skills’ (BIS) Advance Manufacturing Supply Chain Initiative (AMSCI) to develop new diesel technologies for commercial vehicles. The aim of AMSCI is to improve competitiveness, increase supply chain performance and create and safeguard jobs by supporting R&D, capital investment and skills development. The automotive supply chain will receive a total of £45.5 million AMSCI funding, with the programme overseen by the Automotive Council and Dr Chris Owen, Chief Executive Officer of SMMT Industry Forum. It is the largest ever automotive supply chain development programme in the UK. Delphi benefits from AMSCI £4.1 million funding to help develop new common rail technology Help maintain 25 jobs and create a further 11. The project and the product being taken to market are supported by 500 UK manufacturing jobs Global competitiveness ensured AMSCI projects will kick-start much larger private sector investment across the whole supply chain. With better supply chain competitiveness, the percentage of the parts budget spent in the UK will increase and global supply chains will become more concentrated in the UK, setting output and jobs on an upward track. Delphi Diesel Systems was awarded £4.1 million AMSCI funding to develop the next generation of its common rail technology. The project started in May 2013 and will run for three years. It will yield components that meet OEMs’ needs for commercial vehicle engines targeted for production from 2018 onwards. “By increasing supply chain international competitiveness, capacity and capability, AMSCI will increase the sourcing by OEMs and Tier-ones with UK SMEs and will also create the opportunity for suppliers to win new customers in new sectors and increase export-led growth. This economic Funding from the programme will also support SME access to finance issues and provide a combined investment in skills, R&D and CAPEX to address the identified SME market failures. Without this programme of work the essential improvements to be achieved will be lost forever for many supply chain companies.” Chris Owen, Chief Executive Officer, SMMT Industry Forum Ltd The funding will be used in the development stage of the project which will help maintain 25 jobs and create a further 11. The project and the product being taken to market are supported by 500 UK manufacturing jobs. The AMSCI funding will also support training and skills improvements. The Delphi investment in this project will exceed the awarded AMSCI funding. Delphi’s project has already received interest from several global OEMs. About Delphi Automotive Delphi Automotive PLC (NYSE: DLPH) is a leading global supplier of technologies for the automotive and commercial vehicle markets. Headquartered in Gillingham, England, Delphi operates major technical centres, manufacturing sites and customer support services in 32 countries, with regional headquarters in Bascharage, Luxembourg; Sao Paulo, Brazil; Shanghai, China and Troy; Michigan, U.S. Delphi delivers innovation for the real world with technologies that make cars and trucks safer as well as more powerful, efficient and connected. Visit www.delphi.com Employs 3,500 personnel across the UK, 870 in Gillingham, Medway Annual turnover of £9.8 ($16.5) billion in 2013 Delphi Diesel Systems, a key supplier of diesel common rail systems to global vehicle and engine manufacturers About the Automotive Council The Automotive Council provides an advisory and consultative forum for government and the automotive industry in the UK, to ensure a sustained high level conversation with the industry, and to put in place a long-term strategic framework for its development Advanced Manufacturing Supply Chain Initiative (AMSCI) Secretary of State for Business, Innovation and Skills Vince Cable launched the Advanced Manufacturing Supply Chain Initiative (AMSCI) in 2011. AMSCI provides funding across manufacturing to support research and development, skills training and capital investment to improve the UK’s advanced manufacturing supply chains global competitiveness and encourage major new suppliers to locate in the UK. More Information If you would like to know how AMSCI funding could benefit your organisation please contact Mike Scull at SMMT Industry Forum on 0121 717 6600 Download Case Study
