Insight

"Based in the historic spa town of Droitwich, south-west of Birmingham, Barton Cold Form Ltd demonstrates that advanced cold forming is very much alive in the UK. The name echoes the company’s inception as a manufacturer – 80 years ago – in the back room of a pub called the Barton Arms. Its modern incarnation, a 5,000m² production facility, into which Barton moved in 2006, was meticulously designed for efficiency and is equipped with a comprehensive array of forming, rolling and secondary operation machinery. Investment until now has been cautious and carefully targeted but has recently included a new pointing and drilling machine, a SEMS roller and a Tesa-Scan 52 laser measuring machine. Barton has now also introduced a 3D printing prototype service.

Long a trusted supplier to the automotive supply chain – including Jaguar Land Rover, Ford and several tier suppliers – Barton Cold Form holds ISO/TS 16949 accreditation. It has also demonstrated the ability to reshore manufacturing contracts that had previously migrated to Asia.

Remarkably, in 2008 Barton’s existence hung by a thread, its sales book in tatters from the collapse of automotive demand. Today’s GB£8 million business is not just testament to its manufacturing competence but also to a seventy strong team, whose resolve has been strengthened by the flames of near disaster.

All of which explains why Barton should, for more than a year, have been high on the Ian Clarke acquisition list. The Optimas leader is, of course, far from a stranger to manufacturing. The first two decades of his management development were with British Steel before moving on to managing directorship of a UK fastener manufacturer and then a global marketing role for Anixter Fasteners. In 2013 he was appointed executive vice-president, responsible for the Anixter OEM Supply – Fasteners business and is now president and CEO of Optimas.

Optimas already has an excellent manufacturing facility in Wood Dale, near Chicago’s international O’Hare airport. The acquisition dates to 2008 and, perhaps because of the downturn in market conditions, it remained underutilised for several years. It was when Ian Clarke moved to the United States that the plant’s value began to be fully recognised. Since then Wood Dale has seen millions of dollars of investment, including the installation of additional National FORMAX machines – all aimed at optimising its operations, as well as increasing capabilities and efficiency. There has been equal emphasis on investing in the calibre of people at the plant.

For Ian Clarke the rationale is straightforward: “We’re investing in manufacturing because our customers increasingly demand we have these capabilities. Central to the strategy is a vertical integration that massively enhances our abilities to exercise control over the supply chain and deliver critical improvements in security to our customers.”

“Internally we’ve recognised the value of Wood Dale and the rapid returns delivered in response to investment in both machinery and talent. Even more importantly our customers have felt the benefit, in terms of the superior solutions we can provide, together with enhanced levels of flexibility and responsiveness.” For Clarke there is also a cultural, as well as practical benefit, as Wood Dale now plays a proactive role in the OEM interface, working tightly with engineers to develop the solutions they need.

The success of Wood Dale turned the spotlight on the critical need for similar manufacturing excellence in Europe, the lack of which signified vulnerabilities as well as representing a fundamental block to accessing business with certain supply and quality critical OEMs.

“The key for us was to find the right manufacturing partner, who could share a like vision of excellence,” explains Clarke. Barton is already a supplier to Optimas and its managing director, Andrew Nuttall, worked for one of the UK VMI distributors brought together to form Anixter’s OEM fastener business. “That means there is already a lot of like-mindedness, cultures that are in-line, and strong personal relationships,” says Clarke.

For Dan Jack, Optimas’ SVP for the EMEA region, the latest acquisition is integral to the company’s European growth strategy. “We see Barton as a centre of technical excellence, which already demonstrates expertise in engineering complex parts to meet the needs of performance critical applications.”

“Barton is ready to grow and we have both the current and potential customer demand that can deliver that growth. Equally important, as we have already demonstrated at Wood Dale, Optimas is strongly positioned to invest in the continued development of Barton’s manufacturing capabilities and people.”

Optimas also announced the appointment of Tim Taylor as its SVP global manufacturing. His presence at Barton Cold Form during the acquistion announcement was significant – and not just to those employees needing to know there was a real understanding of manufacturing amongst Optimas senior management. The appointment of someone of Taylor’s pedigree signals a far more strategic commitment to manufacturing: A recognition of its importance in enhancing supply chain security for OEM customers and to hone Optimas’ capability in developing specific engineered solutions for them. The learning curve at Wood Dale was an extended one. Listening to the presentations at Barton, there is little doubt the process will be more rapid and incisive this time – not least because the benefits are far more clearly identified.

While Tim Taylor and Dan Jack are understandably focused on the opportunities Barton brings, it was Mike Tuffy who placed the acquisition in the wider context of Optimas sourcing strategy. “Manufacturing will be an important part of our value proposition but it will not detract from the strategic supply partnerships we are now working hard to forge. Even with the investment Optimas will undoubtedly inject to develop Barton, it will remain a specialised plant with high added value capabilities, which we have to use selectively and to maximum effect.”

The message from all three Optimas senior managers to Barton was that this was an investment to protect key current business but above all to accelerate growth. Mike Tuffy is adamant that is how Optimas’ other suppliers will gain from the development. “This is one of a number of initiatives to drive Optimas’ growth. The ultimate benefit to the strategic supply partners that engage wholeheartedly with Optimas will be to win their share of that overall growth.”

The acquisition clearly validates Ian Clarke’s confidence in the investment partnership that launched Optimas as a standalone business. “There is now a seamless relationship with our business,” says Clarke, “and, in very short order AIP has demonstrated tangible, incisive support, evidenced by this acquisition.”

“Behind the scenes we have been able to make game changing investments in technology and systems that work specifically for Optimas, eradicating historic anomalies that had inhibited our ability to act as an integrated, global provider of OE solutions.”

“We have also benefited from crucial guidance in best practice – drawn from their experience of a wide range of previous investments mostly in manufacturing businesses.”

There is no doubt Optimas has now sharpened its pace and tightened its disciplines across all its spheres of activity. “The senior management team is now enabled to think and act far more strategically,” according to Ian Clarke, “and the focus on how we achieve operational excellence is rapidly permeating throughout our business.”

Where next for Optimas? Nobody is talking specifics but investment at Wood Dale has delivered a significant competitive advantage and been recognised as a real differentiator by Optimas’ customers. The Barton acquisition underscores the intention to replicate those advantages in every major continent that Optimas is active.

Developing manufacturing, though, is the proverbial tip of the iceberg. There have also been system, organisational and ongoing supply base improvements, aimed at enhancing the potency of the Optimas service delivery to existing customers and inspiring both internal and external confidence to fuel organic growth.

The appetite, and resource, to achieve greater, faster growth, is now manifest. In an increasingly challenging macroeconomic environment that is not going to come entirely from organic growth – which implies Optimas will not be long in turning its attention to increased market penetration through targeted acquisition of VMI distribution. The trick, as with manufacturing, will be to find the right – and available – targets. The intent and resource, though, are very evidently now there, so expect to hear more about Optimas’ developments in these pages."