We recently sat down with Peter Davies, a Director at Brockhouse, to learn more about his experience in the forging industry and his role at Brockhouse.
When did you first get involved with the forging industry?
In the early nineties when as the Managing Partner of the Business Strategy Group I was asked to carry out a strategic review of a large forging company. I quickly realised that the automotive industry, as it was set up then, was going to be the death of the forging industry and that high volume forging was going to disappear from the UK and would be imported from the far east. I also realised that investment in the industry was virtually non-existent and was going to be almost impossible. There were machines available that would automate the forging process, but their cost would mean a pay back in ten to fifteen years. It was possible to raise that sort of capital in Germany but impossible in the UK. I concluded the only way to survive was to amalgamate the forging companies and adopted a ‘Last Man Standing Policy’. I recommended that the forging company’s parent either buy everyone else or sell. They sold!
Alas my predictions proved to be correct, the forging industry in the UK has almost disappeared in the last thirty years. All the major players that supplied the automotive industry have gone.
When did you become involved with Brockhouse?
I became involved with Brockhouse in the late 1990s when I arranged the amalgamation of two of Hill Smith’s forges with Brockhouse. I swapped some of my fee for sweat equity and joined the board of Brockhouse. Over time we have bought the other shareholders out. The strategy since this time has been very much ‘Last Man Standing’. As a result, we have purchased or merged with several smaller forges. The other strategy was to specialise in smaller runs often of heavy weight forgings, providing a real service. As a result, Brockhouse invested heavily in its own die shop so that we could turn around projects very quickly. In addition, considerable investment was made in machining capacity so we could provide a fully machined component. We also looked to export markets. As a result, in 2012 Brockhouse was the Evening Stars Export Company of the year. In 2016 Original Steel Services Ltd, due largely to Brockhouse and some the other group companies, was the 19th fastest growing export company in The Sunday Times Export Fast Track list.
Why do you like the forging industry?
Of all the industries that I have worked in or been associated with as a consultant, forging is the most fascinating. The basic operation has not changed in well over 100 years: heat metal up to a very high temperature and hit it with a big hammer. This may sound incredibly easy, but in reality there is a great deal of skill and artistry involved. It is real manufacturing; you cannot truly appreciate what traditional manufacturing is until you have been around a forge.
What is your main role at Brockhouse?
I joke it is making the tea at Board meetings. My main contribution is helping develop the strategy. Also and more importantly ensuring we have a great team in place and making sure they are well motivated. Fortunately, we are incredible lucky to have an amazingly loyal work force. It is not uncommon to meet people who have worked for Brockhouse for forty or fifty years. One is in awe at their skills.
How do I see Brockhouse’s future?
That is fairly simple: providing very high levels of service, not just in terms of the times of delivery but actually working with our customers. Over the years our customers have also lost skilled engineers and designers, so we now have to provide the technical expertise to many of our clients. Ironically there is now a drift back from overseas suppliers to the UK, not just because of reliability of supply but because they realise it is so much easier to come to talk to people in West Bromwich than in China or India. They also realise that if they take a total cost model into consideration, in terms of the time taken to visit, having stock on the water, quality etc. the difference between the low-cost sources and UK based manufacturers is getting smaller. And in many cases, we are now cheaper.
Where do you see Brockhouse in five or ten years’ time?
Following a very similar pattern today providing a very high level of service particularly technical and design expertise to clients. We all think computers and 3D modelling etc will make life easier but in reality, the basic knowledge and Black Art of forging will still be required, and I see companies losing this knowledge as the Baby Boomer generation retire. They want a component but often haven’t a clue how to make or process them. Brockhouse will fill that gap.
Brockhouse has been in business for over 138 years and as a major shareholder I realise I am only a custodian of the business and a protector of the skills in it, to be handed over to the next generation, so it is still around in another 138 years.