Facing a 70% drop in revenue, a NSW manufacturer had to find a new product line fast if it was to avoid the need to cut staff. Barely a month later, the business is expanding its workforce to meet escalating global demand.
Staring down the barrel of a 70% drop in revenue and the need to lay off staff because of COVID-19, a New South Wales manufacturer has launched a new product line in four weeks and is now looking to hire extra staff to meet surging demand here and overseas.
Managing Director of Machine Technology, Terry Ibrahim, said it was an example of how Australian manufacturers could use this pandemic to show the world the benefits of the Aussie way of working.
Machine Technology operates three distinct brands, using the same back-end infrastructure at their Kogarah operation.
IDC Medical Australia produces sharps and waste containers, Fountainline manufactures grass line marking machine and paints, and Fountainline Integrated Manufacturing Solutions offers unique end-to-end manufacturing solutions.
Terry said when COVID-19 hit, the company was entering the peak season for their linemarking business.
“When we went into lockdown Fountainline just froze, which accounted for 70% of our revenue at that time.”
IDC and the contracting business were still going okay, but the business needed to find something extra or they would have to cut staff.
The answer was a new product line of hand sanitiser stands which went from concept to production in four weeks.
Terry said it was the first time they were able to vertically integrate a product across all their businesses.
“We were able to leverage our diverse distribution networks across IDC and Fountainline and all the manufacturing capability was available in house.”
The result is orders coming in from the United States and New Zealand for the product.
“We only launched two weeks ago and have already sold 5000 units,’’ Terry said.
“We are now working six days a week and as many hours as we want to meet demand. We created a whole new product line and business unit in a matter of weeks.”
And that product line is here to stay with plans to explore other markets.
He said the product is also of higher quality than cheaper units which are traditionally sourced from Asia.
Terry said Australian manufacturers needed to back themselves and show they offer a credible option in all markets.
Machine Technology first joined Ai Group on 2011 and Managing Director Terry Ibrahim said membership allowed them, as a smaller business, to stay connected to the bigger picture. He said the regular newsletters were full of valuable information and advice.
