JCB dealer digs in for future growth

The Sheffield-based firm, which is sponsoring the SME Manufacturer of the Year category at the Yorkshire Post Excellence in Business Awards, is also creating new jobs as it plans its strategy for the future.

Iain Welsh, general sales manager, said: “People are replacing fleets and expanding because of workloads.

“Things are positive at the moment and we feel we are doing well against targets that are set so there is optimism. I spoke to one man on a construction site who is so busy at the moment he can’t cope with the workload.”

The company, which has 95 staff, is recruiting five new apprentices for the first time since the recession, as part of its future investment.

Mr Welsh said: “We are looking to the future because we have got to have these people coming in. When you look at JCB there is a very good career path for the right person in a dealership.”

Last month JCB, which was founded in a garage in Uttoexter, Staffordshire, by Joseph Cyril Bamford, officially marked its 65th anniversary after reporting a strong recovery from the recession with a return to robust earnings.

The heavy machinery group increased earnings before interest, tax, depreciation and amortisation (EBITDA) to £235m in 2010, up from £94.5m in 2009.

Sales in 2010 increased by 48 per cent to £2bn, up from £1.35bn in 2009. In 2010, JCB sold 51,600 machines, compared to 36,000 the previous year.

Sales at TC Harrison JCB were £40m last year, compared to £32m in 2009.

The figure is expected to rise to £50m this year as the firm expects to sell over 700 machines, compared to just over 600 in 2010.

TC Harrison JCB, which is one of JCB’s longest serving dealers, supplies JCBs to a range of customers from individuals to corporates, and local councils. As well as its Sheffield headquarters, it also has a base in Garforth, on the edge of Leeds.

During the recession, the JCB group made 1,800 workers redundant and introduced a reduced working week of 34 hours for a period of six months in order to limit job losses. Workers also took a week of unpaid leave in September.

Mr Welsh said: “We were affected massively and had to cut our cloth accordingly. Nothing was happening – housing stopped being built and our volume sales were affected. We cut our costs and staff levels and now we are starting to come out of it.”

JCB now employs 7,000 people worldwide, including 4,000 in the UK.

In 2011 JCB plans to invest more than £20m in modernising and increasing capacity at its 11 UK plants.

Developments in the waste and recycling industries have been driving growth at TC Harrison JCB over the last decade and have led to the development of new specialist products, such as the range of wastemaster machines. “It’s a hugely important part of the business,” said Mr Welsh.

He added that the company was well-placed for the future and had good levels of accessible stock, despite the Japanese tsunami which affected the supply of machine parts.

The JCB group is investing in a new 350,000 sq ft factory in Sao Paulo, Brazil, for the manufacture of backhoe loaders and tracked excavators. The plant will become operational in early 2012. The company has also opened an engine manufacturing plant in India which went into production this year.

This is the first year that TC Harrison JCB has sponsored the Excellence in Business Awards, which are now in their sixth year.

Mr Welsh said the company wanted to support the SME manufacturers category as these companies were an “important industry for Yorkshire”.

The deadline for entries has now closed for this year and the winners will be announced at a glittering dinner on October 13 in Leeds.

Deputy Prime Minister Nick Clegg will be the main speaker at this year’s event. The South Yorkshire MP is the latest heavyweight politician to speak at the awards ceremony.

The shortlist will be announced in mid September.

Ticket interest should be registered via [email protected]

Yorkshire Post Excellence In Business Awards

Young Entrepreneur of the Year, sponsored by O2, open to owner-managers and directors aged 35 and under. Innovation of the Year, sponsored by Drax. SME Manufacturer of the Year, sponsored by TC Harrison JCB, open to companies with a turnover of £10m or less. Outstanding Employer of the Year, sponsored by the Bradford University School of Management. Exporter of the Year, sponsored by thebigword. Business Community Award, sponsored by Aviva. Young Business of the Year, sponsored by Goldman Sachs. Companies with a turnover up to £10m, sponsored by Yorkshire Bank. Companies with a turnover between £10m and £50m, sponsored by PwC. Companies with a turnover above £50m, sponsored by DLA Piper. The Yorkshire Post Individual Award for Excellence.