Operational expansion
The UK’s leading manufacturer of
temperature sensors is set to expand
its operations in South Yorkshire after
securing a six figure lending package
from NPIF – BEF & FFE Microfinance,
which is managed by Business
Enterprise Fund (BEF) and Finance for
Enterprise (FFE) and part of the Northern
Powerhouse Investment Fund.
The funds provided by Finance for
Enterprise will be used to help
Dinnington-based Labfacility acquire
the adjacent 6,000 sq ft premises to
its existing manufacturing and stores
facility as it targets future growth within
the export sector. The property has been
secured on a 10 year lease and will
increase the size of the company’s site to
18,000 sq. ft.
Responsible for producing a range
of more than 5,000 temperature
instruments, sensors, and couplings,
Labfacility manufactures more than
a million products each year which
are sold in 120 countries across the
globe and used in the engineering,
pharmaceutical, aerospace, oil & gas and
food production industries.
In recent years the company became
mindful of the potential uncertainties
caused by delays in Brexit. Working
closely with growth accelerator manager
Jim Scott, the company began exploring
international growth options in markets
which would be largely unaffected by
the current political uncertainties and
began exploring non-EU markets. Export
orders now account for over 25% of the
company’s sales, resulting in regular
orders being placed by businesses based
8
in the US, China and Australia.However, in
order to meet demand, Labfacility knew it
needed additional working space. When
a neighbouring unit became available
the company turned to Finance For
Enterprise for help, recognising that a
quick deal was needed in order to help it
achieve its future growth plans. export market. Sadly, Jim passed away
before our latest phase of growth had
been fully realised. The success we are
achieving today is a testament to his
hard work and dedication.
The six figure loan has enabled
Labfacility to not only secure the
new property, but invest in upgrading
the building as well as purchasing
new equipment, enabling it to boost
production, as well as creating additional
new roles including a planned six
apprenticeships within the business as
the company sets its sights on future
growth. “Businesses often find their growth plans
stifled because they are unable to access
lending from traditional high street
lenders. Entering the export market can
be lucrative but it isn’t without risk.
Labfacility was launched in 1971 by
Norman Riddett, from his family home
and has now grown to employ some 80
people across sites in Dinnington and
West Sussex.
Under the leadership of Norman’s
son, Martin, Labfacility pioneered its
temperature sensor manufacturing
operations in Dinnington in 1991 after
acquiring a local competitor. Since that
time, the number of staff employed
in South Yorkshire has risen from just
three employees to over 40 with further
recruitment anticipated.
Martin Riddett, Managing Director,
Labfacility said:
“The growth and success we have
achieved in recent years is very much the
legacy of our work with Jim Scott, who
helped us to understand the possibilities
and opportunities available within the
Alan Scott, Senior Investment Manager,
Finance For Enterprise said:
“At a time when the manufacturing
sector has been particularly hard-hit as
a result of the uncertainties surrounding
Brexit and possible future trade deals
with the EU, Labfacility was quick
to seize the opportunities offered by
entering into new export markets, but
crucially targeted areas outside Europe,
ensuring that the impact of Brexit
could be mitigated. We have worked
with Labfacility for a number of years
and the approach they have pioneered
has resulted in the company achieving
significant growth in overseas markets,
enabling the company to invest in new
premises and jobs within South Yorkshire.
The Northern Powerhouse Investment
Fund project is supported financially by
the European Union using funding from
the European Regional Development
Fund (ERDF) as part of the European
Structural and Investment Funds Growth
Programme 2014-2020 and the European
Investment Bank.
For further information, please visit
www.labfacility.com
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