X5 investment spurs diversification move
Do you choose to diversify and buy the technology to support that strategic move? Or do you buy technology that can offer you excess capacity and diversify into a new sector based on its proven strengths after extensive use?
Monday, 23 Jan 2017 16:52 GMT
Richard Davis, managing director of Iberian Group, beams after the DYSS X5 is delivered
This is a question facing many businesses in our sector, with Iberian
Digital opting for the latter option and managing to generate impressive
growth in doing so after purchasing a DYSS X5 digital cutter from AG
CAD.
“Prior to the arrival of the DYSS X5, we had one member of staff cutting
by hand full-time, with more complex work sent to an external
supplier,” explains managing director of the Iberian Group, Les Allitt.
He continues: “The DYSS has enabled us to re-distribute our labour
resource and eliminate a major external cost. The saving in the cost of
subcontract cutting will pay for the DYSS in less than two years. In
fact, we are using the DYSS flat-out for five days a week, so it will
probably pay-back faster than we realise.
“Initially we bought the DYSS to eliminate bottlenecks and our reliance
on subcontractors. After its installation, we realised additional
benefits such as reduced labour requirement, better cut quality and
precision, and also an ability to process new materials. We’ve even
reduced our material stock holding by over 20 percent.”
Initially we bought the DYSS to eliminate bottlenecks and our reliance on subcontractors.”
Since the DYSS was installed, Iberian has also added wallpaper design
and production to its portfolio. With the design expertise already
in-house, Allitt—who runs the firm with co-managing director Richard
Davis—singles out that it is the ability of the K-Cut vision system on
the DYSS that has allowed the company to manufacture its own lines of
wallpaper.
Allitt concludes: “This example of diversification is now allowing us to
challenge our design team to develop new concepts and market sectors
for our business. Being near the coast, we are also cutting more vinyl
graphics for boats, cars and vans.
“The next step is the point-of-sale industry. Our new-found ability to
rapidly make samples in-house will position us well for exploiting this
market. The in-house designers are already using the Kasemake CAD
software suite from AG CAD to create cartons and boxes for new
customers. In fact, the DYSS X5 and the Kasemake CAD suite are the tools
that now allow our designers to turn concepts from on-screen designs to
physical samples.”
The 24 employee Iberian Group is growing at a rapid rate with the
existing facility being trebled in size from 11,000 to 33,000sq/ft
(1,022 to 3,065sq m). The expansion will accommodate the recent
year-on-year growth rate of 20 percent, whilst facilitating its
ambitions to accelerate its future growth to beyond 40 percent annually.
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