Trigger Sprayer Design and Manufacturer, Canyon Europe Ltd, Northern Ireland, UK, Europe, - Economic challenges and opportunities lie ahead

12 January 2010

Unlike many others in the manufacturing sector, 2009 was a very busy year for Canyon with the plant operating at full capacity. As much as 85% of our business is export and the weakness of sterling made our products more competitive which also helped profitability.

Our strategy for the year was to stay close to our customers, make sure our quality and service was world class and to manage and be more innovative in all areas of the business.  Managing cash flows and mitigating the risk of bad debt were a high priority also.

Looking out to 2010 the challenges remain much the same.  Customers are looking for added value, price reductions and products that differentiate them from their competitors.  We need, therefore, to find solutions to these issues.

Our business is high volume and low margin so we need to operate at world class levels to survive as we compete with multi-national competitors who manufacture in China, so overheads such as labour, raw materials, energy and freight really need to be managed effectively and squeezed hard.

We are very susceptible to the volatility in commodity prices and the swings in the currency markets as we buy and sell in several different currencies. 

Strategic plans are in place to grow the business from £12 to 15m over the next 3 years, so funding this growth will present a huge challenge given the current economic climate where banks have reduced their lending to build their balance sheets.

However, all business face these problems and the recession has made us all sharpen our pencils to be more innovative and creative in how we solve problems and create opportunities.

As chair of the Northern Ireland Polymer Association the feedback from our members is mixed depending on the sector they service.  However, in general, there is much more optimism around, although companies are cautious over the speed of the recovery, are aware of increased competition in the global market and the increasing costs to manufacture their products here in Northern Ireland.

We pay the highest price for our energy than any other country in the UK, ROI and the EU, which is a big disadvantage and a real burden that some companies may not be able to carry.

On a more positive note, our members are very pro-active in innovation and see future opportunities for growth through collaborative partnerships and engagement with academia to leverage their know-how and bring new products to the market.

In short, 2010 will be much more of the same; focus on costs, managing the cash and looking to turn ideas into added value.