Customer relations is key to economic growth
July 01st 2008

Customer focus rather than cost-saving is now the major driver in the compressed air and vacuum industry sdays Chris Dee, executive director, BCAS

Britain’s manufacturers are continuing to defy the pervading economic gloom by posting their tenth consecutive quarter of healthy growth in the second quarter of 2008 according to a major survey published recently by Engineering Employers Federation and Grant Thornton.

Despite reports of weakening economic growth in the UK, firms reported a rise in domestic orders and export orders have also remained relatively strong.

The EEF chief economist, Steve Radley, said recently: “Manufacturers are providing a beacon of light amidst the current economic gloom and remain cautiously optimistic about their immediate prospects. Companies are responding to the squeeze on their margins from rising costs by continuing to invest in their businesses to drive up productivity. However, at a time of heightened uncertainty, the government needs to send a clear message that it will ensure that the UK remains an attractive place to do business.”

However, the combination of higher raw material, energy, component and freight costs has clearly eaten into firms’ margins as they have struggled to pass on all of the cost rises that they are facing.

Many manufacturing firms are outperforming the rest of the economy and are in a good position to weather the economic downturn, a report from the EEF claims. The EEF also said the top performing sectors were enjoying stronger growth rates than in France and Germany. What is notable is the diversity of activities that use compressed air and vacuum systems are thriving.

Alongside the well-known success stories of aerospace and pharmaceuticals are sectors producing food and drink, scientific instruments, mechanical appliances and basic metals – which have all shown strong growth.

A brief look at some of the trends indicated by BCAS members’ statistics schemes over the last four years clearly shows that BCAS members are able to show such strong growth:

• Sales of stationary compressors have increased year on year with 2 – 4 kW machines being the big sellers in reciprocating machines and 7.5/11kW machines being the big sellers in rotary machines.

• Sales of portable compressors units have also

increased year on year with the 51-65 L/sec machines

outselling all other sizes.

• In a monthly sales index report from the distributor/supplier members, they are recording exceptional growth during the last nine consecutive months.

Membership of an industry Trade Association is critical for business growth and efficiency. All firms – large and small – must have have access to impartial and expert advice that will improve productivity and, importantly, the skills to use it effectively.

As the only UK Trade Association for the compressed air and vacuum industry, BCAS is a trusted partner to many businesses, be they manufacturers, suppliers or endusers, across Britain and, more recently, across Europe.

On any given day you’ll find BCAS staff providing technical, standards and business advice to members – helping them to tackle a whole range of challenges with compressed air and vacuum systems.

Belonging to BCAS means that we can offer you business advice, resources and support services, helping you operate more effectively. Our structure means we are owned by our members, allowing us to focus on delivering excellent value.

BCAS helps its members better meet customer needs, enter new geographic markets and build value in their offerings.

Any trade association has to broaden its outlook and its scope. Investing in providing customers with additional services has given BCAS members major competitive advantages.

Two thirds of members cited improved customer retention and satisfaction, better tailoring of products and services to customer needs, and the development of new marketing and delivery methods. More than half of members said that their customers were more demanding and that responding to these demands had led to an increasing number being listed in a recent report on the Top 50 Companies by market share.

Q: How do you encourage members to improve their own performance?

A: BCAS has a rolling campaign that started in 2006 and has already seen many members’ turnover grow and the membership of BCAS grow to an all time high. It is all part of our focus on retention and recruitment. This year will see four members’ companies receive their 50 year continuous membership award and another nine receive their 25 year continuous membership award. In general, the larger companies are growing at around three times the rate of smaller companies who are growing at a little over 2%. As in other industry sectors, some compressed air businesses will aim to acquire competitors in the highly fragmented industrial air compressor industry to increase turnover and profitability.

Highlighting growing sensitivity as economic growth slows and in a sign of a backlash against cheap Chinese imports in the European Union, BCAS joined European commissioners from Italy, Germany and France to successfully overrule a decision by Peter Mandelson, the British trade commissioner, not to recommend antidumping duties on air compressors from China.

BCAS members are able to take advantage of a range of services and activities – tailored to their needs:

• Information Service

• Online news

• Early warning of developments affecting their operation

• Information on Government programmes and other initiatives, such as the Carbon Trust Interest Free Loan Scheme which members may want to tap into.

Events:

• Seminars and Workshops on industry specific issues

• Training courses – professionally run and tailored for compressed air users

• BCAS Annual Conference

• Study visits to members premises

Promotion of the compressed air and vacuum sector:

• Publicising the role, benefits and effectiveness of BCAS members

• Promoting BCAS members through the BCAS website

• Enquiry Service

Clearing house for enquiries about compressed air and vacuum systems:

• Directing enquiries to and from BCAS members and partners and between BCAS members

Web site:

• Directory with hot links to members' own websites generating thousands of requests per year

• Information exchange – enquiries, feedback, jobs

• Links to many other useful sites

Research:

• Major Reports on industry issues – e.g. Consumer Codes of Practice, European Representation, Statistics

• Benchmarking Studies

Practical Help:

• Developing and communicating Best Practice

• Development of staff

• Information exchange on organisational issues – e.g. Governance, Property, IT, etc.

BCAS partners:

• New value added services at specially negotiated rates to be announced in the summer of 2008.

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