Markertech UK Ltd is the specialist Distributor & UK Service Agent for Weidmuller Printing Systems. Established in 2007, the business sells and rents Weidmuller’s printers and holds a huge range of markers and consumables at their unit on the outskirts of Crickhowell, Powys.
Markertech UK also offers a Custom Marking Print Service across the whole range of Weidmuller print media. The business hold by far the largest stock of these products in the UK making them the market leader in their field.
What challenges and potential issues were you facing due to the Brexit uncertainty?
Weidmuller are a German company who currently deliver daily to the UK. We would normally have deliveries of components and stock from Germany about 3 times a week. Whilst we hold a very large stock, the product range is vast, and we simply don’t have the space to store the quantities of everything we need.
Under current EU arrangements, Weidmuller have circa 3000 frictionless individual deliveries a week into the UK. However, post-Brexit, one of the risks we would be facing is that any anticipated changes could require custom’s clearance and/or be subject to tariffs. This would have a potentially big impact both in terms of consignment time and cost. Weidmuller, therefore, indicated to us that as a result of Brexit, they intended to consolidate these deliveries to one weekly shipment to the UK but to a local distribution centre where the individual deliveries would then be expedited, thus turning 3000 potential customs clearances into just one. This meant that we would have to increase our stocks by 3 or 4 times to be able to maintain the same level of service we provide today… and our service levels and response times are our USP. To assist us, Weidmuller have said they would consider offering us improved payment terms if we increased our stock levels, but the consequences of this are that under current arrangements, we would have problems storing this quantity of stock at our unit.
At the same time, we were examining an investment in a new laser engraving machine which will help with the impact of Brexit on our business in two ways:
1. The laser engraver has the potential to open up new revenue opportunities with our existing customers and other markets.
2. The laser engraver can complement some of the products currently purchased from Weidmuller.
Your reasons for applying for the Brexit Resilience Grant: what projects is this going to be invested towards and how do you think the fund would help you tackle the challenges posed by Brexit?
Faced with these threats and opportunities, we worked with our Business Wales Relationship Manager and a Welsh Government Innovation Specialist to examine the proposed investments, and to look at their separate and conjoined merits. As far as the Brexit Resilience Grant is concerned, the assistance we were successful in attracting will be invested in increasing Markertech UK’s storage capacity at our unit in Crickhowell, so that we can increase our stockholding four times. In addition, we will develop space for a Laser Engraving department within the current facility. This will be achieved by installing a new Mezzanine floor and racking with a room below to house the engraving machine, its consumables and associated equipment.
We have 25 years of expertise with the Weidmuller printing systems product range and are the UK’s only service & support centre. We currently hold by far the largest stock in the UK and this is why we get our customers’ business. This project will enable the company to dramatically increase its stock by up to 4 times and mitigate against the risk of delays and/or increased costs. It also enables us to develop the facility to hold and exploit the functionality of the laser engraving machine, which reduces our reliance on some of the product range from Germany.
The investment in the laser engraver was supported by a Welsh Government Innovation Voucher but it was very important that the total investment was examined and so it was a real team effort to take this forward.
Any feedback you might have on your engagement with the Business Wales service and the support you’ve received
The service and support we have received has been excellent, especially our time spent with our Relationship Manager Steve Maggs and Innovation Specialist Chris Probert, who have guided us through this process.
Business Wales involvement
Markertech UK Ltd were introduced to Business Wales by a Welsh Government Innovation Specialist for support with business planning ahead of a planned investment in laser engraving technology. Business Wales Relationship Manager Steve Maggs assisted with their business plan and application for a Welsh Government Innovation Voucher which was successful. They were awarded £25,000 to support a £50,000 investment in the laser engraving equipment.
At the same time, it was identified that the risks posed by Brexit meant that additional storage was needed to accommodate components from Germany and a plan to add additional storage and specific training needs was identified. Steve helped put together a successful Brexit Resilience Fund application for £13,000 towards an additional investment of £26,000. Markertech UK are also on track to recruit 4 new members of staff over the next 6 months in the areas of sales, marketing and production. They are also receiving support from Business Wales HR and Sustainability advisers.