Bouncing back or bumping along the bottom?
As the UK economy starts to come to terms with the impacts of the Coronavirus pandemic, It’s already clear that the shocks will affect more businesses than others. Certain sectors of the economy have been dealt a death-knell and will find it very difficult, if not impossible, to recover in sufficient time to keep their businesses afloat. Yet for others it has opened-up new opportunities from unexpected quarters or led to a fresh appraisal of business strategy. Tough times for all but, like most economic downturns, there will be winners and losers.
The UK manufacturing sector has been particularly badly hit with output at a 30 year low, only 10% of businesses operating at full capacity and with employment and investment being significantly reduced.
But those that remain flexible and adaptable have continued to weather the storm and indeed some have flourished seeing new opportunities emerge.
Fortunately, this has been the case with many of the businesses in Avon Group and these are just three examples;
Avon TSA identified an opportunity to supply plastic mouldings for medical monitoring equipment opening-up a whole new market-niche opportunity for the business and future sales growth potential.
Foam Techniques were able to quickly adapt production methods to start producing components for PPE equipment which resulted in a surge of new business when other sales were slowing.
Avon Engineered Rubber has experienced record sales growth for rubber seals used in the manufacture of aerosols and pump action dispensers. With the ability to scale-up production and supply rapidly, the business has opened-up relationships with new customers who will provide sustained long-term business.
“The success of our individual group businesses in identifying and responding to these new business opportunities in the wake of the Covid-19 pandemic has undoubtedly meant the Group as a whole continues to forge ahead” says Mark Rushin, Group Director. “Our diversified business model and the adaptability of our individual group businesses has meant that whilst we have felt the effects of such a significant downturn, we are emerging in a very fit state and ready to continue our growth plans as the UK and global economy starts to recover”
Avon Group’s confidence in its business model and the strength of the Group is underlined by its latest acquisition of Edgewest Plastics – a highly successful and innovative plastic mouldings business that will contribute added capability and increase market penetration in some of the key sectors in which it operates.