News
Published: 26th August, 2008
Press Release
Ellis Patents – Keeping it British
Founded in 1977, Ellis Patents is a designer and manufacturer of specialised electrical cable and pipe fixings for a range of market sectors including, power generation, oil and gas (offshore & onshore), construction and HVAC.
Unlike its competitors, the company, which is perhaps best known for its market leading cable cleats and saddles, manufactures all of its products in the UK – and what’s more, they even utilise the local populace in Rillington, North Yorkshire, in a manner many would consider had been consigned to the past.
Richard Shaw, managing director of Ellis Patents, talks to EP&A about the company’s stance on British manufacturing.
“When the business first came into being in the late 1970s there was no question about overseas manufacturing. The work was done in Britain, full stop. Of course, over the intervening years, many manufacturers have leapt at the opportunity to subcontract their work to overseas outfits and / or open branches in far off climes, but we have always strongly resisted.
“The reason behind this is straightforward – the negatives of overseas manufacture far outweigh the positives.
“In our opinion, which we feel is very well-informed having never been blinkered enough to not research emerging manufacturing markets, the switch to overseas manufacturing can have a negative effect on product quality, vastly increase lead times, leave a company unable to trace the source of its production materials, and have an adverse effect on product innovation.
“By maintaining our manufacturing in the UK, we retain absolute control – and it’s this control over everything from delivery times through to product quality that really does benefit the end user. For example, our ability to react quickly to new demands is such that our plumbing products division recently designed, developed and produced a prototype of a new product for a customer within the space of just one week – a scenario that simply wouldn’t be possible if our manufacturing facilities were overseas.
“Another plus in the column for UK manufacturing is that it scores highly in the green stakes. Not only is the carbon footprint significantly reduced, but all processes and sites need to meet the strict European legislation regarding emissions and the environment. The environmental impact of manufacturing that is not subjected to these rules and regulations has, of course, been dramatically highlighted by the issues surrounding the recent Olympic Games in Beijing.
“There are, of course, pressures placed on every company to manufacture overseas and the key one is price driven. Labour is far cheaper and, as such, products can be manufactured more cheaply. This though is something we’ve been able to respond to through several different methods over the years.
“Firstly, an awful lot of manufacturing processes are now automated and as such labour costs aren’t anywhere near as significant as they used to be. There are though certain products that are still labour intensive and in these situations the British manufacturer needs to be innovative in order to compete.
“The one product that poses this problem to us is our pipe clip, which is sold in multiples of 100s and requires a nail manually inserting in every single clip. Our way round the potential cost implications of this is that we contract the work out – to families in the town of Rillington where our factory is based. Those participating have small machines in their homes, have product delivered by one of our vans and are paid on a piece rate to insert the nails. This is a process that we have operated for years and proves to be beneficial not just to ourselves, as it helps to ensure these products remain competitive, but also to those involved – many of whom are young mothers who are still able to benefit from a steady income and the benefits of work, without having to leave home and worry about child care issues and expense.
“As I’m sure you can tell we are committed to remaining a wholly British manufacturer and truly believe the pros far outweigh the cons. Yes, labour may well be cheaper in the Far East and other emerging markets, but with so many other aspects of the process stacking up in favour of the UK, why would we even consider the move?
“For those who still doubt our approach and continue to push on the cost benefits, I have one simple question – does cheaper mean better?”