Manufacturers are moving on with a helping hand from Fusion

The demise of the Midlands’ industrial sector has been called so many times over the decades that many observers appear to think it’s happened.

Whilst low-cost rivals from Asia and Eastern Europe are an ever-present threat, a significant number of manufacturers are not only prospering, but expanding.

We have helped a dozen such businesses relocate to new premises in the last year, and have similar projects under way in the region and elsewhere.

“Many consultancies prefer involvement in glitzy moves to swish new Grade A office space, but whilst such work is enjoyable, it’s certainly not as demanding as finding a new home for an industrial business,” said director Steven Jelfs.

“If you’re looking for new premises for a firm of solicitors or accountants in the centre of Birmingham, you’ll usually have plenty of options.

“If a traditional manufacturing business needs to move from one industrial district to another, it will be much harder to find suitable space.”

Our latest industrial client, Birmingham-based MacDermid, exemplifies the challenges.

Its US parent wants it to relocate to new premises but the UK management team needs to retain its experienced and skilled workforce.

“They are based in Bordesley but cannot go out of town as they would be losing touch with their workers and some of their customers and their suppliers,” said Steven.

“They want around 80,000 sq ft of space, so it’s a fair-sized move, but we think we have found them somewhere suitable nearby.”

Our largest manufacturing relocation in the last year involved one of the region’s best-known metal-forming firms, Barton Coldform.

Founded in Birmingham during the 1930s, the business had subsequently moved to Droitwich, but decided to invest in purpose-built premises.

“They decided Stonebridge Cross Business Park was an ideal location but didn’t really know exactly what they wanted,” said Steven. “Stoford did the shell, then we did everything from designing and fitting out the offices, to putting in a canteen for the employees and installing the lighting, power and compressor installations in their warehouses.”

John Houseman, director-general of Barton Coldform, described the firm’s switch to Stonebridge Cross as a textbook study in manufacturing relocation.

“Barton had previously operated from several buildings at different levels, which was very inefficient, but now they are in purpose-built premises of which any plc would be proud,” he said.

“It makes such a difference when companies in our sector are able to invite customers, prospective clients – and even their bank manager – to such impressive offices.”

Houseman says such moves also enable manufacturers to re-engineer their operational structure.

“Typically, they will have been on their previous site for decades, perhaps even a century, and systems will just have evolved. Relocation gives everyone the chance to design both premises and processes from scratch.”

However, Houseman also counsels that such expensive moves must be fine-tuned.

“The chairman of a plc I used to work for always said that new equipment should never be put in old buildings and the opposite is equally true,” he said.

“There have been cases of manufacturers moving to new premises but not investing in kit and not establishing more efficient production processes, which is a disaster waiting to happen. You need advice and you need quality advice.”

Our reputation for understanding the needs of manufacturers has seen our client list spread swiftly from our Birmingham heartland.

Bognor Regis-based JCC Lighting appointed us to manage its relocation for its 50,000 sq ft regional distribution centre in the Midlands, as did Elster Metering to create a new 45,000 sq ft assembly and warehousing base in Stafford.

We have also won work in north-east Lancashire, helping an engineering firm to switch its 80,000 sq ft production centre and 24,000 sq ft office HQ.  This comprises the first stage of development of a 22 acre site, once occupied by Dutch TV tube maker Phillips.

The latter project underlines the need to avoid becoming obsessed by one type of location.

“Ambitious and growing manufacturers often think they need to find a greenfield site for their new premises to make a statement, which works for some people but not for others,” explained Steven.

“We have been successful with Fort Vale Engineering in Lancashire; the site is well positioned for motorway access, only a few miles from their original premises and much better value than a greenfield site, but which they hadn’t previously considered.

“It’s good to have a relocation strategy in outline, but you must always ensure that all the options for your move are then considered, as it is just too expensive a decision to get wrong.”

How to eradicate bad memories of buildings

With an ongoing shortage of Grade A office accommodation in central Birmingham, demand for quality refurbishments continues to rise. Carried out properly, these premises can match and exceed their new build counterparts but expert planning and management is essential to ensure older means wiser.

Buildings, it seems, have memories. Not in a paranormal way, rather it is people who have long memories about buildings.

So when a prospective new tenant is weighing up their options for new office accommodation, certain addresses will be given short shrift, simply because of what they used to be like ten or 15 years ago. As in so many walks of life, a bad reputation is easy to acquire yet fiendishly difficult to lose.

Director Steven Jelfs explained: “Many potential clients are receptive to the concept of refurbishments yet need some convincing, especially when they only remember a particular building as a stuffy, outdated office they visited many years ago.

“Even before a client commits to a property, we can be called to visit the site on their behalf in order to appraise the opportunities of the property and to provide a vision of the finished product.” 

The changes required to upgrade a typical ‘tired’ office for modern needs are so profound that they will affect virtually every aspect of the building, both visible and behind the scenes. Yet if properly managed and executed, the outcome is a unique workplace, blending the comforts and convenience of the new with the style of the old: a workplace which impresses and performs.

A suitably qualified project manager will take you through each and every stage of development from structural appraisal of the existing building to the end users’ technological requirements.

“If you are new to refurbishment, the scope of work required can be quite daunting and that is before you consider some of the more fundamental structural issues.  Apart from the more obvious repair issues, there are often structural reconfigurations required to achieve modern spacial arrangements for occupiers.  These are all issues we deal with on a regular basis.”

Aside from our expertise in negotiating the complexities of refurbishment, a key reason why project management specialists are in such demand is the continuing shortfall in suitable new-build offices at the top end of the spectrum.

“There is plenty of demand for the best accommodation but simply not enough new product,” explained Steven.

“A number of quality refurbishment schemes are in the pipeline and will make a significant impact. In the meantime, some occupiers have been delaying their decision and taking their time to commit.”

We have been involved in a number of major refurbishment projects. Among them is Cavendish House, Waterloo Street – a highly distinguished office building in the heart of the city’s conservation zone;  Maple House on Corporation Street; and 33 Bennetts Hill, a former banking hall and outstanding listed building.

All have undergone comprehensive transformation to provide first-class 21st century accommodation. The question remains: will there be major new occupiers taking these, such as decentralised Government departments, or will it be a case of ‘musical chairs’ with existing companies swapping and upgrading?

Agents and developers are all anxious to see how the market pans out, yet they still believe the opportunities for quality refurbishment is set to remain buoyant either way.

Steven said: “It is inconceivable that sufficient new top grade office space will be available to meet all demand.  It just cannot be done within the core areas of the city centre. Whether we see a marked net influx of organisations or just a merry-go-round of existing occupiers, the demand for quality refurbishment is bound to remain high.

“Rather than bemoan this, occupiers should shake off any preconceptions and bad memories they might still have about older properties and realise that many gems exist in this city – and there are many specialists who can make them shine again.”

Taking the strain out of making big changes

Whether you are relocating a business or refurbishing your existing offices, you run the risk of leaving much of your goodwill behind unless the process is professionally planned and managed, director Steven Jelfs considers some of the challenges – and solutions – experienced by our clients.

 

As building consultants, we are engaged by public and private sector organisations to provide professional services at times of considerable pressure. This may be business relocation, office refurbishment, property survey or a cost management exercise.

Whether it’s commercial office or an industrial client, the principles of engagement are the same: intelligent planning, meticulous preparation, attention to detail and ability to respond to any unforeseen circumstances.

While a leading-edge IT business and a traditional component manufacturer may appear to have little in common at first glance, their needs – and our modus operandi – are often similar.

Take a recent project for an industrial client based in Redditch.  We ensured their IT requirements were met – including all cabling and networking – checked the telecoms capacity and services, reviewed the security, advised on space management, lighting and power services, and generally oversaw all practical aspects of the move.

Given enough time, the MD may have been capable of handling much of this himself, but he recognised that he could not neglect his management duties for weeks on end, so asked us to manage the entire operation while he concentrated on running his business.

Our involvement from the early stages was key to achieving his objectives and we advise anyone seeking project management input to involve your consultants from the outset – not just when you think you need them.

Much of our work on the Redditch project would apply for a more office-orientated, IT-based firm, though our industrial clients, who comprise about one third of our workload, do present some particular issues. For example, production plant and precision machinery often require specialist handling.

Timing can also become hypersensitive if it affects stock levels and key order deliveries, but whether our client is in IT or widget pressing, our input extends to those important details every bit as much as the bigger picture.

For example, ask many MDs if they prefer a kettle or Zip boiler in the new tea room and you might well get a blank look.

In fact, the boiler may prove far more cost effective over time and give a much enhanced service to the staff who rely on it several times every day.

The same applies to mundane matters like water filtration.

We know that a plumbed-in filtration machine is better for staff and the bottom line over time, which is why we are keen to talk clients through the benefits and ensure the premises are as productive as they can possibly be.

Another key plank of our project management portfolio involves refurbishment. To date, we have worked on internal and external refurbishment of residential, commercial and industrial properties, ranging from labyrinthine Victorian offices to starkly functional 1960s units.

Our surveying pedigree gives us a particular insight into the possibilities of an existing building. Not only can we review its condition and advise on its structural condition, but we can assess its potential for residential, commercial or retail purposes.

These are critical decisions that will affect profitability for many years to come. This is why we consider it essential for experienced directors to maintain a hands-on role with client affairs, developing long-term partnerships.

Two recent projects, both in Bennetts Hill in the heart of Birmingham’s commercial district, illustrate this philosophy.

The properties presented widely differing practical challenges yet, as with our relocation work, our guiding principles had much in common.

One involved a scheme for Gort Properties, comprising a restaurant and office accommodation; the second was a slightly larger scheme involving comprehensive refurbishment of a commercial property for New Wood Securities.  In the latter, we retained the existing shell but split the building internally.  Part of it – a former banking hall – enjoys a distinctively high ceiling, which we preserved.

To optimise its functionality and aesthetic appeal, we then created a second access for the remaining part of the building.

For the other project, we recommended the addition of a further storey as the best way to enhance future market potential.

When considering refurbishment, clients tend to look to the medium term – three to five years – whereas we encourage a longer-term assessment and think laterally in terms of future potential and the property’s investment value.

The outcome on these two projects was therefore entirely different, due to the varying type of business and the clients’ eventual requirements.

In many other cases, the central purpose of the property may not change but the client is anxious to bring their asset up to date, creating a better working environment for staff and a better image of their customers.

This was essentially our brief for Cavendish House in Waterloo Street, for HSBC equity fund.

Here we had little input into the concept of the building but concentrated on improving the office accommodation and delivering greatly enhanced communal areas.

The enduring fascination of project management lies not only in helping clients to achieve their new or improved premises, but in the undiminished ability of buildings to inspire and surprise.

In recent weeks, we have turned gamekeeper – planning and co-ordinating our own office relocation into a new corporate home near St Paul’s Square.

I am bound to report that our approach was text-book material, with extensive internal remodelling and redecoration planned like clockwork.

Regrettably, however, even our powers of foresight could not predict the broken pipe in our property, which turned our big moving in day into a mopping up day worthy of a Titanic sequel.  It seems even the experts get soggy feet occasionally.