A
28 year strategy of looking to the future has paid off for Elmdale's Managing
Director, Peter Elms, who heads a secure group with a strong future.
"My father always looked to tomorrow" he said "and during the good times,
retained profits wherever and whenever possible. "The stronger the balance
sheet, the easier it is to survive the lean times. This is a policy I
have continued and hence we have in excess of 30 years of retained profit
which would take a long period of losses to create a major financial problem".
He recalled the strategy the company used during Ted Heath's 3-day week
when the traditional markets for welding products were likely to be badly
hit by the economic situation.
But Elmdale spotted the huge potential for welding products in the offshore
industry based around Aberdeen, so Steveweld was founded and was a success.
"Overall, Elmdale Holdings has been lucky to have a market which concentrates
on offshore activity in Aberdeen, Stockton on Tees and Lowestoft," said
Mr Elms. "During recessionary periods in the past the offshore market
has remained buoyant and the overall position of the companies has continued
to improve".
Today, Elmdale relies on high standards of personal service, and fast
deliveries from its £400,000 worth of stock to maintain its place in the
market despite difficult trading conditions.
"Manufacturing does not seem to be a huge priority with this Government,"
he said. "The value of the pound is being allowed to remain high and that
affects our exporting customers ability to compete overseas. Couple this
with the amount of British companies that have been purchased by foreign
competitors and one must question where their allegiances would lie during
a global decline in trade".
Mr Elms said the industry had already seen rationalisation among manufacturers
with the takeover and merger of many businesses.
This had also been the case with distributors and he believed the process
had some way to go yet. "My belief is that we in welding distribution
are sing a recession that will turn around very slowly if at all and it
would not surprise me to see more company failures in the future as the
market compresses even more".
But, asked about an alleged policy shift by manufacturers into direct
selling to end users, Mr Elms said that he was convinced that if the manufacturer
believed that his mark share was being maintained or increased with their
chosen distributor arrangements, they would have no need to supply direct.
"At Elmdale" he said, "we have endeavoured to show loyalty to the few
manufacturers we now trade with and have developed a strong trading partnership
with them.
"In the main" he added "our customers appreciate the added value we are
able to offer the supply chain and their chosen route is through our companies.
The scenario ensures that a strong partnership is built up between manufacturer,
distributor and end user that all parties are comfortable with".
A recent acquisition, Anglian Welding Supplies, Hadleigh, was ideally
situated between Elmdale's head office at Rayleigh and the Lowestoft ranch
enhancing the company's ability to service an area where it already had
a strong presence, and the acquisition also increased Elmdale's market
share. And further expansion cannot be ruled out: "should the right opportunity
arise in the future", said Mr Elms, "which I could see would benefit the
Elmdale Group, I would explore further".
John Elms and Brian Grisedale were the founding fathers of the company which challenged the existing system of distribution of welding supplies which was handled by manufacturers with their own sales force and transport.
But, along with Steveweld which was launched to serve the offshore industry in the Aberdeen area in 1975, Elmdale provided a high level of service to their customers and it soon became clear to the manufacturers that such companies were offering a very useful additional outlet for their products.
Gradually the industry began to change as the merit of the welding distributor was recognised and today's market is primarily served by their local distributor.
The Elmdale organisation has always been a front runner in these changes and earned many distributorships.
In 1986, the partnership changed to a limited company and Elmdale Holdings Ltd was formed, opening a branch office at Lowestoft in 1989 and acquiring the business of Grainger Welding Supplies in 1991.
This and the later addition of Eagle Welding Supplies in Cleveland, has generated a group turnover in excess of £8 million and confirmed the group as one of the major independent distributors in the UK.
The company is now headed by Mr Peter Elms, Managing Director, with other directors responsible for the activities of the different branches.
The company specialises in the stockholding and procurement of welding and cutting equipment, welding consumables and tools, particularly to the offshore oil and gas industry.
The objective of the management of the company is to provide these products and services in a manner which meets the needs and expectation of its customers and conforms to contractual and regulatory requirements, using qualified, trained and experienced personnel.
In order to achieve this objective it is the policy of the company to operate a quality system based on International Standards for Quality System BS EN ISO 9000 and to periodically review the effectiveness of this system in achieving its objective.
Today the company deals in equipment and consumables from the leading manufacturers and holds a pre-eminent position in the industry's distribution channel.
And, like all successful companies, customer service is a paramount consideration.
Help and advice is readily available on the equipment and materials used in the welding and engineering industries and in the rare event of a question too difficult even for the Elmdale staff, a wide ranging network of contacts at manufacturers and other specialists, can usually elicit the right answer.
With a wide range of materials that need to be joined together by the metal fabrication and repair industries, using the right equipment for a job is vitally important.
The staff at Elmdale are well placed to advise on the right materials and equipment, and the company can supply a vast range of consumables and tools for almost any application.