3 Hainge Road, Tividale
Oldbury, West Midlands
0121 557 8455
Oldbury based Malthouse Engineering recorded a 50% increase in turnover in 2011 compared to 2009.
"We are delighted to see group turnover increase, its a testament to our workforce who work hard to continually offer a great service to our customers. This shows that as a country we are starting to move out of the financial situation we have faced over the last two years. At Malthouse Engineering we have seen an up turn in orders from existing customers but also significant interest in our services from new customers." says Roy Taylor, Managing Director.
Malthouse Engineering are the UKs largest steel profilers, a process that involves using a flame to cut shapes from steel plate. Malthouse is able to flame cut steel from 5mm up to 500mm thick in a range of carbon steels. The company supplies over 42 different sectors including nuclear, oil and gas, automotive, agricultural machinery, earth moving machinery, tool making, energy and machine tools and has five sites across the UK in Worcester, Wakefield, West Brom and Wednesbury.
"Its always been a priority of mine to ensure that no one sector or market accounts for more than 3% of our turnover. By doing this we maximise returns when one sector is in severe decline it is balanced by another in its ascendancy. This way we ensure the overall business is not impacted by any downturn. However, the recession of 2009 was unlike anything I have experienced in my 30 years at Malthouse. The decline in demand was uniform across all markets and all countries. The company has faced a very challenging trading period over the last two years."
Despite the success of 2011 Roy is concerned that a lack of investment from small to medium sized organisations in new projects, innovation and employment could cause a stagnation in growth and may see the economy dip into recession again.
"We hear and read continually that the collapse of the Eurozone is imminent, the UK could be downgraded and our financial system as we know it is on the verge of destruction. This does nothing to build the confidence of our nations small businesses and only fuels uncertainty. This uncertainty is causing us to hold back investment in new projects which could result in missed opportunities, lack of expansion and reduced efficiencies. At Malthouse we have put on hold projects to improve our capabilities and increase our output. Experienced, unemployed engineers that could be employed have not been hired." Explains Roy.
"This uncertainty and lack of investment could stifle the growth and the resurrection of our economy. We are not alone in taking this view and that is concerning. When small and medium enterprises do not have the confidence to invest in developing and innovating the effects can be wide-reaching: suppliers won’t receive orders; Banks won’t be able to lend; the unemployed won’t find jobs. People wont or cant buy houses and therefore wont need as many washing machines , vacuum cleavers etc or indeed afford cars."
In a rallying call to other UK manufacturing firms Roy says "I believe, and so do colleagues in the manufacturing industry, that if enough of us got together to talk about the positive performances of our firms then perhaps we could start turning the tide of negativity and give the UK economy a boost."