PPMA Gear Up Issue 2

success stories
Taking UK
packaging
into the
big league
A focus on building
relationships has
helped this British
manufacturer’s export
sales to soar
At a glance
Challenge: How to double the
size of a business in just five
years
Solution: Build and nurture
relationships with key
overseas partners
Outcome: 57% increase in
export sales sees firm named
in Sunday Times Lloyds SME
Export Track league table
When Packaging Automation set itself the
goal of doubling the size of the business
in just five years, it was clear that it
would need to look beyond the UK for its
customer base. At the time, the company
was only dipping its toe into the exporting
waters; in 2013, exports made up just 5%
of its sales. Since then, a commitment to
build and nurture relationships with key
partners across the world has seen it
ranked number 47 in The Sunday Times
Lloyds SME Export Track 100 league table.
The league table ranks Britain’s small and
medium-sized (SME) companies with the
fastest-growing international sales and
Packaging Automation, which appears for
the first time, achieved an impressive 57%
increase in export sales to take it straight
into the top 50.
Product innovation
Packaging Automation supplies packaging
technology to a number of markets,
but predominantly the food industry.
Innovation and the introduction of unique
patented technology has been key to the
company’s success over the last two years,
and has seen it leapfrog its competitors
by offering the highest speed tray sealing
machinery in the world. The increasing
popularity of packaged goods in northern
Europe, North America, the Middle East
and Australia has fuelled the rapid growth
in export sales and by working with
a number of key distributors in these
territories, the firm has been able to share
its technology and packaging knowledge
with food manufacturers and fresh
produce packers around the globe.
Getting to know you
Choosing the right distributors has been
key to Packaging Automation’s overseas
success. “We already had a few established
agents but when we made the decision
to increase our export sales, we identified
the key markets and began to develop
those relationships,” explains Sam Ashton,
Commercial Director. “We targeted markets
where we knew we either already had
relationships with people that were selling
tray sealing equipment, or where we knew
there was going to be demand based on
changes in trends in food packaging.”
However, there have been some
challenges along the way. “The biggest
challenge for us was – and still is –
logistics,” says Sam. “That’s to say, being
able to get large pieces of machinery to
our export markets to hit the lead times
that our customers there require. It’s an
ongoing issue for us – not only being able
to build the equipment quickly enough,
but also factoring in the shipping time. For
example, sending machinery to Australia
incurs a six-week shipping time.” But Sam
is in no doubt that targeting exports was
the right decision for the company: “From
a starting point of just 5% in 2013, exports
now account for 33% of our total sales,” she
reveals.
6 www.ppma.co.uk