Latest:
Products firms head for Europe to slash costs
12:44 09 Sep 2004
|
Building products firms are finding it easier to avoid distribution
costs by setting up in central Europe, rather than dealing directly
with distributors in the UK.
RB Farquhar (RBF) managing director Michael Shand said the company can deliver prefabricated bathroom and kitchen pods to the UK from its £3m Czech site for the same price as UK-fabricated pods, and expects to recover the investment within two years.
The company sources materials directly from Ideal Standard, near its North Bohemia site, to make pods for private housebuilders, student housing and hotel chains.
Shand said: "We met Ideal Standard early on when we were
planning this factory. There's no middle man - the network of distributors here is not as established - which is very significant for us. Ideal Standard can't deal direct in the UK ."
Czech authorities help RBF to keep wage bills low with assistance to retrain unemployed locals. Rene Samek, director for the UK and Ireland at business development firm Czechinvest, said the local authority picks up half the wage bill for the first two years, which costs the same as keeping one person on unemployment benefit for one year.
In a town where unemployment is around 15%, and workers are currently denied employment in Germany and Austria, the local authority is keen to encourage overseas manufacturers.
As the country switches from heavy to light industry, Samek added he does not think the cost of Czech labour will match that of the UK for the next 20 years.
British Embassy head of trade and investment Karen Stanton said the government is keen to help UK companies compete, despite manufacturing redundancies at home. "It's easy to look at it in terms of job losses, but that's not the whole picture. We will give them what advice we can so they will be as successful and competitive on a global level."
RBF sources materials such as timber and steel with the help of Alpha Management Consultants. Director Rodney Yeadon said the firm looks for efficiencies in suppliers' processes to reduce costs.
RB Farquhar (RBF) managing director Michael Shand said the company can deliver prefabricated bathroom and kitchen pods to the UK from its £3m Czech site for the same price as UK-fabricated pods, and expects to recover the investment within two years.
The company sources materials directly from Ideal Standard, near its North Bohemia site, to make pods for private housebuilders, student housing and hotel chains.
Shand said: "We met Ideal Standard early on when we were
planning this factory. There's no middle man - the network of distributors here is not as established - which is very significant for us. Ideal Standard can't deal direct in the UK ."
ADVERTISEMENT
Czech authorities help RBF to keep wage bills low with assistance to retrain unemployed locals. Rene Samek, director for the UK and Ireland at business development firm Czechinvest, said the local authority picks up half the wage bill for the first two years, which costs the same as keeping one person on unemployment benefit for one year.
In a town where unemployment is around 15%, and workers are currently denied employment in Germany and Austria, the local authority is keen to encourage overseas manufacturers.
As the country switches from heavy to light industry, Samek added he does not think the cost of Czech labour will match that of the UK for the next 20 years.
British Embassy head of trade and investment Karen Stanton said the government is keen to help UK companies compete, despite manufacturing redundancies at home. "It's easy to look at it in terms of job losses, but that's not the whole picture. We will give them what advice we can so they will be as successful and competitive on a global level."
RBF sources materials such as timber and steel with the help of Alpha Management Consultants. Director Rodney Yeadon said the firm looks for efficiencies in suppliers' processes to reduce costs.
ADVERTISEMENT
Most Viewed Articles
ADVERTISEMENT