Fuda-Hobart Rose, which was established in 1959, has tapped into support from the Business Growth Service and the Let’s Grow fund to reshore up to 20% of its manufacturing back from China after customers demanded greater flexibility and quicker lead times.
The company is investing more than £250,000 and hundreds of hours of manpower into integrating the new lines and identifying local supply chain partners.
With strategic advice from its local Business Growth Manager and funding from the Manufacturing Advisory Service (MAS), the firm is now producing occasional furniture for the likes of Dunelm, John Lewis and Next.
Initial projections suggest annual sales will double from its current £8m to £16m by 2020, with 100 jobs also due to be created.
Executive chairman David Rose said: “The UK’s furniture manufacturing sector was decimated between 2000 and 2011 as a result of imports, so it’s great to be able to ‘home-shore’ certain products to the North East.
“Made in the UK is back in vogue with escalating freight costs and issues over quality making it a lot more competitive to manufacture in this country. Our customers are also looking for shorter lead times between the placing and delivery of orders, something that would be impossible if we were getting them made in the Far East
“We needed additional support to set up production in just six months and received great assistance from MAS and consultants Oxford Holt Ltd, who are specialists in lean manufacturing and process improvement.
“There’s no way we could have done it so quickly on our own. I’m delighted to say we are now producing 20% of our total product range in the North East, with the long term plan to increase that to 60% by 2020.”
Fuda-Hobart Rose, which has recently secured a £285,000 grant from the ‘Let’s Grow Fund’, is now operating from four factories in North Tyneside, totalling in excess of 100,000 sq ft of assembly and manufacturing space.
County Durham based independent business services group BE Group is responsible for the administration of Let’s Grow, business advisers and chartered accountants UNW provide the technical support and appraise applications for support. It is also supported by The Journal and Evening Gazette which are promoting the initiative.
The project to establish the latest factory started in November last year, with new plant and machinery successfully installed and now making up to 100 different soft furnishing and occasional furniture products every week.
Some skilled operatives have already been employed to cope with new demand and a training school for furniture making – including frame making, upholsterers and sewing – is now open for business.
Source Article from http://www.bqlive.co.uk/2015/03/26/soft-furnishings-firm-reshores/
