TECHNOLOGY
Defenders of the nation – Applied Integration directors ( from left ): Graham King , Garry Lofthouse and Lee Raywood are working with the MoD , Royal Navy and BAE Systems .
APPLYING THEMSELVES
Defence contracts , cobots and a letter from Australia : the remarkable growth of Applied Integration
He won ’ t be the first Teessider to head down under – but when Garry Lofthouse follows in Captain Cook ’ s footsteps and visits Australia , it will mark another milestone in the inspiring story of Applied Integration .
The automation technology firm began life in 2005 developing safety shutdown systems for oil rigs . Two years later , it was approached by a US defence giant to work on a large UK defence contract .
Since then , Applied Integration has become a key player in the defence arena , as well as developing an automation and robotics division that is going from strength to strength , specialising in supplying and developing collaborative robots ( cobots ), AMR vehicles and equipment for production lines .
But when director and cofounder Garry received a letter from South Australia acknowledging Applied ’ s part in a multi-national project to create a new fleet of nuclear-powered submarines , he admits it was something of a “ pinch me ” moment .
He says : “ We got a letter from the South Australian government , highlighting Applied Integration as a significant supplier to
Proud – Applied Integration director Garry Lofthouse .
the £ 200bn AUKUS project being developed by the UK , America and Australia .
“ We ’ ve been invited to visit the embassy and to meet the teams out there , which is due to happen this year . But to get a government writing to you as a business , indicating that you ' re a key supplier , it feels extraordinary , really .”
Providing automation control systems for the defence sector has been Applied ’ s core business since 2007 – although , given its sensitivities , Garry , understandably , can ’ t give too much away .
He says : “ All we can really say is that it ' s in the marine sector with the Ministry of Defence , the Royal Navy and BAE Systems . “ We ’ re working as a sub-tier into these organisations but in 2019 , we became a tier one supplier to the main contractors . So , where we were going through a third party , we became a tier one supplier to the defence industry , meaning we were responsible for our own destiny .
“ We ’ ve had to increase manpower and we ’ ve got to manage the whole project , so we ’ ve taken on a lot more responsibility than what we were doing previously .
“ And without our systems and our input , it would have a significant impact on the country ’ s security .”
Applied has leapt from 32 employees in 2017 to more than 80 now . Turnover was £ 7.5m last year , with £ 9.5m already on the books this year .
Not bad for a business that often suitably goes under the radar from its base in a business park on the outskirts of the sleepy
North Yorkshire village of Stokesley , a few miles from Middlesbrough .
Garry says : “ Our name is in a good place across the defence industry and we ' re starting to win major new contracts . We ' ve got submarine division , and we ' re working in surface ships as well , so we ’ re above surface and under water .”
But what would Garry Lofthouse in 2005 have thought of the 2024 version of Applied Integration ?
He smiles : “ I never contemplated when we first started the business that we would be a key supplier to the defence industry , but we ' re getting a lot of visits off cyber security and Ministry of Defence teams to see what we ’ re doing as an organisation .
“ And we ' ve now been classed as a top 75 provider for the marine defence industry . There are more than 10,000 suppliers and after we took over our own destiny in 2019 , we ’ re now deemed within the top 75 , which is quite something .”
And for born-and-bred Teessider Garry , along with fellow Teesside director Lee Raywood and “ adopted Teessider ” Graham King , there ’ s no better place to be based . Garry said : “ We ’ re proud to come from Teesside and I think it ’ s a fantastic achievement for the area to be dealing with such an asset as the nation ’ s defences .
“ But there ' s a wealth of fantastic companies across Teesside doing great things and delivering to these kinds of industries , so it ’ s really good to be part of a strong , healthy Tees Valley .”
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