TS Henderson & Co Ltd is a precision engineering company, specialising in the manufacture and supply of precision-engineered parts and components to a diverse range of sectors, including automotive, aerospace, marine, defence, electronics, oil and gas, music and veterinary/agribusiness. We specialise in the machining of automotive components, specialist fastenings, lifting, lubrication and medical equipment, fabrication of sub-assemblies and components that are used in high-end bespoke planting, harvesting and motion control equipment. The company was founded in 1928, starting out as a repair garage, but we soon built up a reputation for high quality repairs. By the 1940s, we were manufacturing parts for the Rolls Royce Merlin and Griffon engines, used in the iconic Spitfire and Hurricane aircraft. We moved to our Hay-on-Wye premises in 1998 and currently employ 35 people.
What challenges and potential issues were you facing due to the Brexit uncertainty?
The Brexit process has posed a number of challenges for us. As a sub-contractor, we work on a regular basis for a number of sectors, supplying over 18 companies, many of whom supply to the EU. As their order books have slowed down, so have ours. This is mainly underpinned by the uncertainty which we have been experiencing. At the same time, precision-engineering companies based in the EU are using two-axis and three-axis machines as standard and are aiming to capitalise on the uncertainty by gaining market share from UK manufacturers.
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 will help you tackle the challenges posed by Brexit?
TS Henderson & Co worked with Business Wales Relationship Manager Steve Maggs to examine the strengths and weaknesses of our business, as well as the external opportunities and threats that we were facing. Within our factory, we have 9 two-axis CNC machines, 2 three-axis CNC machines and 1 seven-axis machine. We observed that our seven-axis CNC machine was operating at full capacity. We forecast that a 2nd seven-axis CNC machine could mean that more efficiencies could be realised in our manufacturing process and we could become more competitive when producing precision components for existing and new customers in the face of stiff competition. The investment in a 2nd seven-axis CNC machine would give us a competitive advantage over European competitors, few of whom would be able to make the leap from two-axis or three-axis machines to seven-axis CNC machines. Our Relationship Manager supported us with the Brexit Resilience Fund application process and we were successful in obtaining a grant to support our investment. Due to the uncertainties, I’m unsure whether I would have made the investment without the grant.
Any feedback you might have on your engagement with the Business Wales service and the support you’ve received
I would like to say that from the start, the advice has been of the highest quality. We are a small engineering company, we do not employ a full-time accountant or legal adviser. So all the help from (the Welsh Government’s flagship business support service) Business Wales has made this possible. Quick replies on all our questions have been invaluable.
What other activities are you undertaking to prepare your business for the UK leaving the EU?
We are in constant contact with our customers and suppliers. We even visit our new customers on a one-to-one basis to ascertain whether the new business is short-term due to Brexit or long-term. This is mainly because we want to build strong relationships and customer loyalty, and don’t want to be used short-term.
Business Wales involvement
In 2017, Business Wales, in conjunction with a Welsh Government Innovation Specialist, assisted TS Henderson & Co to successfully apply for a £25,000 Welsh Government Innovation Voucher to invest in an additional CNC machine to support their precision engineering activities. In December 2018, the Managing Director, Rob Henderson, contacted Business Wales to explain the impact that Brexit was having on his business and the implications that were being outlined by his customers. Rob explained that meant he may need to invest nearly £100,000 in additional CNC machinery to be able to increase the production of key components to meet his UK customers’ demands. They were aiming to stockpile components, but the MD at TS Henderson & Co was struggling to justify the risk/reward of such an investment.
Business Wales Relationship Manager Steve Maggs assisted TS Henderson & Co to successfully apply for assistance via the Brexit Resilience Fund, which awarded a £40,000 grant towards the purchase of a 7-axis CNC machine. The benefits were almost immediate with TS Henderson & Co winning new orders of £132,000 for the remainder of 2019, and these orders are likely to continue, year-on-year, for the next 3 years. TS Henderson & Co are also receiving support from a Business Wales Sustainability Adviser to examine their green credentials and waste management strategies, and they have an ongoing relationship with a Business Wales HR Adviser to support them as they grow their workforce.