What's Happening?
Brandauer, a historic Birmingham-based manufacturer, has reinvested over £50,000 in energy savings into new manufacturing technology. This investment is aimed at expanding its capabilities across various markets, including automotive, electrification,
construction, and medical sectors. The company, which started as a pen-nib producer and evolved into a global precision metal stamping specialist, has directed these savings towards a new automated assembly line and enhanced wire EDM capability. This strategic move is expected to bolster Brandauer's ability to secure new business from customers in the UK and internationally, including regions such as Europe, China, and the Middle East. The energy savings were achieved through a partnership with Greenfields Energy Group, which helped Brandauer secure a fixed electricity contract and a lower-cost gas agreement, alongside a review of supply capacity and energy charging arrangements.
Why It's Important?
The reinvestment of energy savings into new technology is significant for Brandauer as it addresses the rising challenge of energy costs, which have become a major expense due to increased automation and advanced production technology. By securing competitive and reliable energy prices, Brandauer can ensure the security of supply necessary for long-term planning and investment. This move not only supports the company's growth targets, aiming for £12 million in annual revenue by 2027, but also positions it to explore new market opportunities in laminations, wire EDM, and specialist tooling projects. The partnership with Greenfields Energy Group highlights a growing trend among manufacturers seeking energy cost certainty to support long-term investment planning, which is crucial for maintaining competitiveness in the global market.
What's Next?
Brandauer's strategic investment in new technology is expected to open up numerous opportunities in various markets, potentially leading to increased revenue and market share. The company is on track to achieve its growth target of £12 million in annual revenue by 2027. As Brandauer continues to expand its capabilities, it may explore further partnerships and investments to enhance its technological infrastructure and market reach. The focus on energy cost management and technological advancement could also set a precedent for other manufacturers facing similar challenges, encouraging them to adopt similar strategies to ensure sustainability and growth.
