Machine tool firm gets leaner to prosper

摘要

Now, 70 percent of all machined components by value come torn sub-contract partnerships and, whereas in 1990 the company required a turnover of more than 20 million pounds to break even, the figure is now in the order of 13 million pounds. Fixed costs were slashed in real terms by 40 percent. The extent of the transition is an indication of the deep effects of the recession and of sharpening international competition in the world machine-tool markets. "For Jones & Shipman, compromising quality has never been an option. But we recognised the factors of cost, availability and a very responsive customer-support structure had to be of the very best," he says. The reductions in the cost base, which he acknowledges were "savage", had been made without having to sacrifice the strategic objectives of investing for the future.