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Washing machines are about to roll off British production lines for the first time in almost a decade. Family business Ebac is to launch its new range of washing machines in the spring of 2015 and is currently testing 12 variations at its County Durham base.
Boss Pamela Petty, who took over from her father as managing director 11 years ago, has invested £7m in the project, which is set to drive up revenues at the £15m business more than threefold. “We’ve been working on this for five years,” she says. “People thought we were bonkers for doing it.”
The new washing machines will be assembled in the North East, using British-made components, and most of the metal bashing will take place in the Ebac factory, creating 200 jobs.
According to Petty, British craftmanship will give the products the edge over other brands. “If we’re buying in the plastic granules and doing our own injection moulding, it’s cheaper than the cost of dealing with poor quality parts,” she says.
Manufacturing in the UK also drastically cuts logistics costs, she claims. “It might be cheaper to make washing machines in Turkey, but when you look at the cost of transporting them here afterwards, it’s more than my additional labour costs,” she says.
“We’re not just doing this to say that the machines are made in Britain. It makes sense for the business.”
Ebac, which was founded in 1972 by John Elliot, is one of the world’s most successful makers of dehumidifiers and water coolers. Chinese rivals began to undercut the firm’s prices in the 1990s, eroding market share and cutting sales.
“The business wasn’t in great shape when I took over,” says Petty. “The floodgates had opened in China and cheaper, mass-produced imports were coming into Europe. We took a hit.”
Petty downsized the business “significantly” to cut costs: “I started out by hunting for people’s 'bottom drawer’ systems,” she says. “Those are the habits that people have that don’t add value like processing orders on paper. These days, you don’t fill out a form on the shop floor, you use your tablet.”
To ensure Ebac’s survival, she decided to diversify into new revenue streams. “We originally looked at fridge freezers because they use the same heat exchange technology that we already use at Ebac. We were already dominant in some niche markets so we wanted to attack a more mainstream one, where we could just slip in relatively unnoticed and build market share.
"In a bigger market, you’re less affected by new entrants; in dehumidifiers, each new challenger has a bigger impact.”
But the cost of upgrading the factory to make fridge freezers was punitive. Each variant needs a different production line, costing £2m to £3m. Petty had to go back to the drawing board.
Washing machines were an unlikely choice, because they do not use Ebac’s heat exchange technology. However, the manufacturing model was attractive.
“With a washing machine, a single production line can make 200 different variants,” she says. “It cost us £5m to build but gave us much more flexibility for a smaller outlay.”
Petty began doing extensive research into the marketplace. “I wanted to create a range of washing machines that dealt with all those annoying things that people just accept as part of washing clothes,” she says.
“I’m a woman, so I see these things. Most designers in this industry are male. They just want to use more clever technology, but I focused on making the wash quicker, easier and giving customers cleaner clothes.”
One innovation Petty is bringing back is the “hot fill” wash. This technology has almost died out in modern washing machines. With hot fill, the washing machine uses the same water that comes out of the hot tap. This can reduce energy costs, and also shaves time off the washing cycle as the water does not have to be heated by the machine.
“Hot fill is a very British thing,” she says. “They don’t have it on the Continent because many hot countries don’t keep hot water.”
Hot fill is one of a range of options Ebac is offering. “We have built flexibility into our manufacturing process so we can do small batches and see what sells best,” says Petty.
Washing machines have become an obsession for Petty. “People stopped inviting me to dinner because all I would do is ask people how they washed their clothes,” she says, laughing.
She canvassed opinions from consumers across the UK. More than 2,000 used an Ebac questionnaire to build their perfect washing machine.
“That gave me the idea of offering a customised washing machine option,” says Petty, who offers polka dot and Burberry-patterned machines through Ebac. “If people want their ideal machine, we can recommend the closest match or say, if you want this exact model, we can build it for you but it will take a few weeks.”
Some 3m washing machines are sold in the UK each year. Ebac is hoping to sell 150,000 in 2015 through its website and high street retailers. “That’s not over-stretching ourselves,” says Petty.
Petty started working in the family business in 1986 when she was just 18. “I started as a payroll clerk,” she says. “It was always dad’s intention to have me start at the bottom.
“When you’re a small business owner you do all the jobs in the business. “He wanted to make sure I got that level of perspective, even though it was a much bigger business when I joined.”
Ebac has now introduced a range of air-source heat pumps, and a hot tap, which provides instant hot water. “In three years, we’ll be a £50m turnover business,” says Petty. “All of our products are working now. I just need to start selling them.”
http://www.telegraph.co.uk/finance/...g-machines-for-a-decade-start-production.html
Boss Pamela Petty, who took over from her father as managing director 11 years ago, has invested £7m in the project, which is set to drive up revenues at the £15m business more than threefold. “We’ve been working on this for five years,” she says. “People thought we were bonkers for doing it.”
The new washing machines will be assembled in the North East, using British-made components, and most of the metal bashing will take place in the Ebac factory, creating 200 jobs.
According to Petty, British craftmanship will give the products the edge over other brands. “If we’re buying in the plastic granules and doing our own injection moulding, it’s cheaper than the cost of dealing with poor quality parts,” she says.
Manufacturing in the UK also drastically cuts logistics costs, she claims. “It might be cheaper to make washing machines in Turkey, but when you look at the cost of transporting them here afterwards, it’s more than my additional labour costs,” she says.
“We’re not just doing this to say that the machines are made in Britain. It makes sense for the business.”
Ebac, which was founded in 1972 by John Elliot, is one of the world’s most successful makers of dehumidifiers and water coolers. Chinese rivals began to undercut the firm’s prices in the 1990s, eroding market share and cutting sales.
“The business wasn’t in great shape when I took over,” says Petty. “The floodgates had opened in China and cheaper, mass-produced imports were coming into Europe. We took a hit.”
Petty downsized the business “significantly” to cut costs: “I started out by hunting for people’s 'bottom drawer’ systems,” she says. “Those are the habits that people have that don’t add value like processing orders on paper. These days, you don’t fill out a form on the shop floor, you use your tablet.”
To ensure Ebac’s survival, she decided to diversify into new revenue streams. “We originally looked at fridge freezers because they use the same heat exchange technology that we already use at Ebac. We were already dominant in some niche markets so we wanted to attack a more mainstream one, where we could just slip in relatively unnoticed and build market share.
"In a bigger market, you’re less affected by new entrants; in dehumidifiers, each new challenger has a bigger impact.”
But the cost of upgrading the factory to make fridge freezers was punitive. Each variant needs a different production line, costing £2m to £3m. Petty had to go back to the drawing board.
Washing machines were an unlikely choice, because they do not use Ebac’s heat exchange technology. However, the manufacturing model was attractive.
“With a washing machine, a single production line can make 200 different variants,” she says. “It cost us £5m to build but gave us much more flexibility for a smaller outlay.”
Petty began doing extensive research into the marketplace. “I wanted to create a range of washing machines that dealt with all those annoying things that people just accept as part of washing clothes,” she says.
“I’m a woman, so I see these things. Most designers in this industry are male. They just want to use more clever technology, but I focused on making the wash quicker, easier and giving customers cleaner clothes.”
One innovation Petty is bringing back is the “hot fill” wash. This technology has almost died out in modern washing machines. With hot fill, the washing machine uses the same water that comes out of the hot tap. This can reduce energy costs, and also shaves time off the washing cycle as the water does not have to be heated by the machine.
“Hot fill is a very British thing,” she says. “They don’t have it on the Continent because many hot countries don’t keep hot water.”
Hot fill is one of a range of options Ebac is offering. “We have built flexibility into our manufacturing process so we can do small batches and see what sells best,” says Petty.
Washing machines have become an obsession for Petty. “People stopped inviting me to dinner because all I would do is ask people how they washed their clothes,” she says, laughing.
She canvassed opinions from consumers across the UK. More than 2,000 used an Ebac questionnaire to build their perfect washing machine.
“That gave me the idea of offering a customised washing machine option,” says Petty, who offers polka dot and Burberry-patterned machines through Ebac. “If people want their ideal machine, we can recommend the closest match or say, if you want this exact model, we can build it for you but it will take a few weeks.”
Some 3m washing machines are sold in the UK each year. Ebac is hoping to sell 150,000 in 2015 through its website and high street retailers. “That’s not over-stretching ourselves,” says Petty.
Petty started working in the family business in 1986 when she was just 18. “I started as a payroll clerk,” she says. “It was always dad’s intention to have me start at the bottom.
“When you’re a small business owner you do all the jobs in the business. “He wanted to make sure I got that level of perspective, even though it was a much bigger business when I joined.”
Ebac has now introduced a range of air-source heat pumps, and a hot tap, which provides instant hot water. “In three years, we’ll be a £50m turnover business,” says Petty. “All of our products are working now. I just need to start selling them.”
http://www.telegraph.co.uk/finance/...g-machines-for-a-decade-start-production.html
