Cab Automotive taps into car industry boom to targ...

The re-emergence of the UK car industry as a global leader is helping a Black Country manufacturer target the fastest growth in its 9 year-history.

Cab Automotive, which produces a range of interior components including seats, arm rests, parcel trays and dashboard consoles, has secured £7m of new contracts to supply parts for the new BMW Mini and the seat foams for the Renault van.

These latest successes will help the firm push turnover towards the £40m level and increase the workforce by 30%.

It marks an exciting twelve months for the company which has seen it work with the Manufacturing Advisory Service (MAS) to develop new opportunities and, importantly, buy its 200,000 sq ft factory in Tipton.

Richard McCulloch, Finance Director, explained: “We’ve gone from £20m in 2012 to a predicted £40m by the end of this year, with plenty of new opportunities in the pipeline.

“Managing this growth was one thing, but at the same time we were told by our landlord that there was a chance our facility could be sold. The only solution was to buy the land, as that would give us the platform and security to plan for the next decade.”

He continued: “Working with MAS’ Rachel Eade we developed an application to the Regional Growth Fund that saw us successfully secure £1m towards the £4.5m total cost of the purchase.

“Without the strategic and financial support we received we may have had to look outside the region for our next base, which wouldn’t have been ideal from a skills point of view. Thankfully, we are here to stay in the Black Country and will hopefully be in a position to create more local jobs shortly.”

As part of the expansion, Cab Automotive has spent more than £4m on capital equipment, a state-of-the-art foam production line, new machines for wrapping BMW Mini arm rests and a new water jet cutter.

The company exclusively operates in the automotive sector and works both as a tier 1 and tier 2 supplier into some of the biggest automotive OEMs in the world, including Jaguar Land Rover, Aston Martin, Nissan, Toyota and McLaren Automotive.

A focus on getting involved in the early stage development of new components has also led to the firm designing and manufacturing a bespoke rear passenger iPad tray for the Bentley Mulsanne.

Richard went on to add: “The automotive sector is continually changing and you have to continue to offer added value and innovation to remain competitive and in a position to bid for new platforms and models.

‘The acquisition of our Tipton plant is fantastic news as we have a real centre of excellence here featuring a dedicated paint plant, leather cutting facility, injection moulding, specialist welding and a highly skilled trim department.

“We’ve worked with MAS for four years now, accessing support on quality, lean manufacturing, leadership training and in the installation of new machinery. The help has been essential and a key driver in our unbelievable growth.”

Rachel Eade, MAS Automotive Sector Lead, has worked with Cab Automotive from the outset:

“This is a fantastic story of how an automotive supplier has experienced dramatic expansion, even overcoming the volatility of the sector and the global downturn in 2009.

“Throughout its journey, the management team have tapped into external expertise and support when they needed it. This allowed them to focus on what they do best…produce world class interior components.”

She concluded: “The company is now on the verge of moving from a SME into a larger manufacturer. Importantly, it is staying in the West Midlands, creating skilled jobs and, where possible, sourcing from the local supply chain.”

Existing Chairman Brian Miles and Finance Director Richard McCulloch formed Cab Automotive in 2005 out of the MG Rovers demise.

The company created 56 jobs and took over Lear’s factory on the Vaughan Trading Estate, starting life supplying up to £3m of components into Jaguar and Land Rover sites across the UK.

It is approaching a decade in business with one eye on a £40m turnover, a vision that will be overseen by new Managing Director Richard Semmens.

For further information, please visit www.cabauto.co.uk or contact 0121 520 7202. To find out more about MAS visit www.mymas.org, ring 0845 658 9600 or follow @mas_works on twitter.