Minivator: A Case Study - June 26th, 2008
CASE STUDY: MINIVATOR
Constant innovation to stay ahead of the chasing pack is at the forefront of thinking for a highly successful Black Country company which prides itself on being the world’s second largest stairlift manufacturer.
Minivator Group, based at Kingswinford, announced earlier this year that its sales
have continued to soar. The group’s 2007 turnover was 13 per cent above the previous year with an
operating profit 32 per cent up. Growth has been driven across all areas – in the UK through local authorities, dealers and direct to the consumer, as well as through a wide-ranging international
channel.
This ongoing success has been achieved even though the general economic climate has been getting tougher, and Minivator expects to maintain the trend. Throughout this continued success, Minivator has been very grateful for the services of BDO Stoy Hayward, as Minivator finance director Simon Hardman explains. “BDO is our audit and tax adviser, providing a very pragmatic and professional service for us in everything it does,” he says. “BDO’s team really understand the Minivator business and they are an excellent business partner to work with in that they challenge what we do and how we do it, as well as providing an excellent sounding board for our ideas.
” Looking at the wider picture, Mr Hardman says: “Our industry is, to a certain extent, less susceptible to recession because stairlifts are need driven and not a luxury product which someone could do without when the going gets hard,” he says.
“The UK government announced an increase in Disabled Facilities Grant of 25 per cent earlier this year and it is hoped that they will continue to provide this funding.
“However, as with any industry, there is strong competition and as a company we must ensure that we have market leading products which distinguish us from our competitors.
“We major on innovative design and source materials that are well priced so that the end user has a value-for-money product.
“Here at Minivator we also take customer service very seriously. For instance, each time a
product is installed a customer service representative makes contact to ensure that the
service provided was satisfactory.
” According to Mr Hardman, these “happy calls” show that 99 per cent of customers are happy or delighted with the products, service and Minivator overall and 98 per cent say they would recommend other users to the company. “These results clearly indicate that the products and service we provide are benefiting our clients – something in which we take great pride,” he says.
“They also show that our innovative approach pays dividends for all. Our R & D
team of 12 people forms a significant part of the business and last year we had to take on a new
building just for this department to effect the design and test work for new products.
“The emphasis on innovation and design means that we now have the ability for stairlifts
and their users to be monitored remotely from our office to ensure everything is operating
smoothly. Should there be a problem it can often be resolved, remotely. “For example, if a user has left their stairlift off charge we can just telephone them and advise them how to rectify this potential
problem.
“We can take this service one step further by enabling the user to press a panic button on the
stairlift, contacting Minivator or a designated contact, for assistance. It is the ultimate peace
of mind, not only for users, but also their carers.” Minivator’s group turnover has increased
from £24million in 2005 to a 2008 forecast of £37million, and yet the industry as a whole has
not shown such dramatic growth. This gain in market share is further evidence that the company’s positive approach to innovation and service is the correct course. “Five years ago, our stairlifts were the
products of a typical Black Country metalbashing company, but the Minivator Group is
very much a technology-led service business now,” says Mr Hardman. “We design out costs to provide a more affordable product for our customers. “Another example of this will be seen later
this year, when we introduce a new seating system which can be used across the entire
range. This will mean that there will be just two types of seat instead of several, meaning
reduced manufacturing costs and ultimately better value for the end user.” This high technology is very much led from the Black Country, where two-thirds of the group’s workforce is based. In addition to the Black Country HQ, there is a direct sales operation in Leeds, which deals directly with end users and a US sales and distribution subsidiary for products manufactured in Kingswinford.
“Everyone across the business is very much focussed on our targets,” says Mr Hardman.
“We are a successful company, growing fast, because we set high standards for ourselves. At
the same time, we thoroughly enjoy what we are doing – Minivator has a unique culture
which is at the heart of our success.
“As well as doing the basics really well – such as the cash management – we also invest in the training and development of our staff and currently we are rolling out an NVQ programme for our supervisors. Additionally, we have taken on 24 apprentices this year, as part of our preparation for future growth.”
Indeed, the business — now five times bigger than when it was acquired by the present management seven years ago — has reaped the benefit of investment in product design, IT and staff. And the indications so far this year are that the upward trend will continue.