Innovation key to staying ahead of low-cost rivals

Hyco Manufacturing, based in Castleford, West Yorkshire, has been owned by the husband and wife team of Mike and Kirsty McHugh for 15 years.

The couple believe that Yorkshire's manufacturers can outperform their low-cost rivals by focusing on innovation.

Yesterday, the company revealed that its sales grew by 20 per cent to 3.2m in the financial year to end of March.

Hyco's product range includes electric water heating and space heating equipment, as well as hand dryers which are sold to wholesalers and distributors.

Apart from Fountains Abbey and Leeds United's football ground at Elland Road, Hyco's products can also be found in schools, hospitals, restaurants and offices.

Managing director Mr McHugh heads up the operational side of the business, including product development, logistics and supplier management, while Mrs McHugh, is responsible for sales, marketing and finance.

Mrs McHugh said: "We've got 16 staff and we would hope to see a 50 per cent growth in our staff numbers over the next couple of years, if not more. We would be looking to recruit locally and develop the people we employ. We've been able to keep growing because we've offered a very competitive product in the marketplace."

Mr McHugh said that many companies were reversing the trend to outsource manufacturing overseas, because there were concerns about quality control.

He added: "In Yorkshire we have to be focusing on some world-class design or special technological skills because there's no way, on a low-end product, we could compete on cost.

"What we and some of our competitors have been doing is sensibly bringing (manufacturing) back and gaining control, whereas five years ago the vision was to push everything out to the Far East.

"People are taking a more sensible approach and using the location and technology that's most appropriate for what they are trying to do. A lot of the time it is in Yorkshire. You also have to think about logistics and the ability to be close to a customer and to respond quickly to their needs.

"It's very easy to lose quality control. The simplest and trivial of matters can go wrong. We can send inspection teams in, but what happens on the day the team isn't there? It's about working with the right people in the first place."

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