Brexit Strategy: Combilift Shares how it has prepared
Managing director of Combilift Martin McVicar is convinced that the key to continued success and growth in the UK market is an increased focus on R&D and new product development.
Of the €200m turnover generated by materials handling equipment manufacturer Combilift in 2016, €50m came from the UK. Managing Director Martin McVicar is optimistic that it can continue to grow that volume.
“Brexit is a big challenge but we are convinced that the UK market is still going to need our type of product. We haven’t cut back resources in the UK in any shape or form,” he says.
Combilift is putting a couple of measures in place to cope with Brexit. For example, over the past year it purposely started sourcing more subcontractors in the UK. “We are aiming to buy some components in British pounds to counteract currency fluctuations,” notes McVicar.
Another key decision made over the past few months was to invest more in R&D and new product development – Combilift intends to invest 7% of its annual turnover in these areas going forward.
“We are convinced as an Irish company that the way to succeed against currency fluctuations or export tariffs in the UK is to have innovative products for which you can charge a premium. This strategy will also help us to be successful in markets outside the UK.
“We intend to double our business every five years. There is no reason why we couldn’t be running a €1bn business from County Monaghan one day.”