ACE Issue 27 2020 | Page 8

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 HIGH RELIABILITY Did you know... The British Bulldog is one of the most dependable types of dog in the UK. Their reliability is unsurpassed and they will serve you well for years. Our tacho generators and eddy current tachometers have been around for years and require no maintenance. www.rheintacho.com