JT boost as group secures go-ahead in the US

Leeds-based JT Shower Trays said the £1m investment will not only help it unlock new markets but also safeguard the future of its current base in the city.

The manufacturer has secured accreditation in the notoriously difficult US market and hopes that exports will be a key driver in future growth.

Paul Crossley, managing director of JT, told The Yorkshire Post: “We’re looking at export markets for continued growth.

“We’ve been very successful in the markets that we’ve picked. One of the key markets that I’ve been looking at for probably two years is the US, which is just massive, and we’re making in-roads into that.

“We’re now fully accredited in the US and we now have a partner in the US. This year it’s about delivering and getting the product into the US market, which is why we’ve invested significantly in the machinery at the plant.”

The firm has already seen some success with exports to Germany, Ireland and the Middle East.

A factor that aids trade is standardisation says Mr Crossley, something that isn’t the case when dealing with the US. Mr Crossley has been involved in US trade partnership negotiations.

He said: “It’s about a level playing field in standardisation of products between the UK and US markets.

“One of the things we always say is it’s a small pond and that we talk the same language but it’s actually been one of the hardest markets for me personally to get into.

“Germany, the Middle East have all been fairly easy because we have a very good product and we’re the best at what we do but the US market has been very difficult.”

JT has been working alongside BritishAmerican Business to help raise awareness of the benefits of removing barriers to trade in the US.

The work has culminated in a meeting with the chief negotiator for the US government and the US Ambassador for Trade.

Standardisation is common across Europe says Mr Crossley. However, he doesn’t think Britain leaving the EU would result in any great changes to the way trade is carried out with European nations.

He said: “I can get on the plane to anywhere within Europe currently today and know that there is a standardisation that we all work to.

“I don’t believe, whether we go or stay, that that standardisation will leave. I would prefer us to stay, if I’m being honest, because open markets are good for everybody.”

Mr Crossley says there is enough support to help SMEs such as his when it comes to exporting, but you have to go look for it.

“They don’t come knocking on your door. You have to go and look. You have to be committed and if you are and you make contact with UKTI they’re very good. But they don’t do the job for you. They enable you to do the job.

“Nobody has ever got me a deal but they’d help me get the deal.”

Although Mr Crossley says the national living wage will impact the wider manufacturing sector, as it looks to compete against businesses from across the world, he added that JT was ready for the rise in wage costs and welcomed the initiative.

Instead the firm will look at making its production more leaner in order to find cost savings and offset additional labour costs.

He said: “If I need people, I’m going to employ them. We’ve got a programme of employing more people today – that will continue. I don’t see it stopping us at all.

“It makes us even more mindful of making sure that the manufacturing processes are as lean as possible to make us as competitive as possible.”

JT is also looking at new computer systems to help drive efficiency at the business.

Going back to basics

In 2006 the company employed 135 people. However, the recession proved to be “fairly painful” for the Leeds-based manufacturer.

Today the firm’s headcount is 77 and growing as the construction industry starts to find its feet again.

Paul Crossley said: “The recession hit everybody in the construction industry.

“It was certainly the first recession that I’ve been through where the replacement market and also the new build market were hit at the same time.”

JT used the period to go back to basics, paid off its bank debt and made cost savings through the business.

Mr Crossley said: “We never lost a single customer in the whole recessionary period.”