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WAY FORWARD WITH FUTURA FRAMES

   

Mike Rigby visits Futura Frames in Ireland to see what UK fabricators
can learn from its pioneering business model and approach to colour.

Futura Frames is an unusual trade fabricator.
It has pioneered a profitable new business model which
other fabricators might consider as they struggle to
invest and grow in difficult markets. Its product mix
would stop most fabricators in their tracks.
FUTURA FRAMES
   

Futura's website, www.futuraframes.ie, proclaims it to be Ireland's leading PVC
manufacturing company. Established in 1997 and based in Bandon, County Cork
in the South West of Ireland, Futura was the solution to a problem for five medium
sized PVC fabricators: Wesco Aluminium & UPVC; Leo West Enterprises;
Classic Building Solutions; C&W Windows, and The Window Group.
Each competed vigorously in the market, and still do, but faced the same problem -
how to invest in the best, most productive window making machinery, the best
products, facilities and management to enable them to compete profitably in
a competitive market?

Most small to medium sized PVC-U fabricators don't have the volume to fund the
investment they need to remain competitive. Nor do they have the purchasing power
of a business five times their size. Compensating for the lack of the best machinery
and systems often distracts management from sales. Those who focus on sales
often struggle with manufacturing.


In a unique business model, five medium sized PVC fabricators set up their own trade fabricator,
Futura. All profits have been reinvested and the machinery and factory expansion to
52,000 ft sq ft was funded from cash flow.

A new business model for fabricators

The five pooled resources and set up their own trade fabricator to make PVC
windows, doors and conservatories exclusively for them. The legal agreement took
some work, but allowed them to compete while benefiting from joint supply.

"In the first two years, Christie O'Sullivan, one of the founders, was Managing Director
of Futura Frames," explained Tony Lyne, General Manager. "With the funds, facilities
and guaranteed throughput it was run for optimum efficiency, quality and service.
The first two years were critical in making the vision work. I was recruited as
Production Manager from a manufacturing background, and when Christie returned
to Wesco I became General Manager. All profits have been reinvested and the
machinery and factory expansion to 52,000 ft sq ft was funded from cash flow."

Model of efficiency

Futura is extremely well equipped with the latest in-line work centres; cruciform, six,
eight head and quad welders and automatic corner cleaners. It has the latest bending
technology and the latest Bystronic IG line, a Bottero cutting line, a Bystronic vertical
arising line and a Unilam glass toughening plant. Futura can produce A, B or C
energy rated windows. It has the ISO2000 quality management system, and
is working to get EN12150 and EN12600 on glass.

Futura's grown from 20 people producing 200 frames a week in 1997/8 to 120
producing 1,300 internally glazed all welded frames a week with the capacity
on one 39 hour shift for 1,500 frames. Sales are €13 million.

Colour is serious business

In the UK, coloured profile including woodgrain is 16% and growing. In Ireland,
colour has grown strongly and is around 50% and rising. Futura's sales reflect this
as you can see by the mix in the factory. "You've got to be efficient and well organised
to manage this mix and deliver what the customer wants, when they want, regardless
of colour," explains Tony Lyne. "We keep 11 colours in stock: Signal Red, Burgundy,
Graphite Grey, Fir Green, Cobalt Blue, Traffic Black, Cedar Wood, Cream, Light Oak,
Clay Ash, Traffic White Woodgrain, and white of course, and we offer a wide range
of other colours within 6-8 weeks. Some are for commercial, but domestic colour
sales have really grown. Homeowners have taken to colour for new build and
home improvement, and they're willing to pay more for it. We won a lot of business
because of colour," explained Tony, "because we had it available."


Futura is extremely well equipped with the latest in-line work centres; cruciform, six, eight head
and quad welders and automatic corner cleaners.

The supply chain steps up to the challenge

Paul O'Sullivan, Managing Director of National Profiles, one of Ireland's largest
distributors of PVC-U, Aluminium window and door profile, and the Spectus Window
Systems distributor in the 32 counties, says: "Supplying colour is a great opportunity
to make the sale and make money doing it. Having a balanced stock and supplying
all those colours in quantity, in normal delivery times, keeps everyone on their toes.
You have to be more efficient. A few years ago, when colour was a special, ordered
well in advance and batched in the factory, anyone could cope. Now we have had to
step up a gear because colour is what customers want, and we cannot let them
down. The whole supply chain, from system company to end user has had to
learn to deal with colour."

Reasons to change to Spectus

Tony Lyne believes Futura must invest and plan to keep ahead of the market so his
investors and customers remain competitive. He is planning for as much change
and investment in the next five years as in the last five. "Futura invested €2.5 million
in the last two years and €1.5 million this year alone. One of the biggest changes
was a new PVC-U window system. We needed to change from a 3-chambered to
a more thermally efficient 5-chambered system, but there were a number of reasons
for changing to Spectus. The Pascal rating was very high because the tolerances
were very good; the single leg bead for trade supply; having both 70mm and 63mm
options; a modern VS, reversible and Bi-Fold doors; being able to offer more colours
off the shelf were critical factors. But having decided to expand our external trade
business, from 40% to 60% of sales meant the marketing support from Spectus
was also critical. Originally we did no marketing. We didn't need to. Now we have
five trade sales people and we need to create strong awareness in the Futura brand.
We have to make sure everyone knows what we offer and how we can help them
sell and make more money selling our windows than someone else's."

Reasons to buy from Futura

Why would trade and small builders buy from Futura rather than another large
trade supplier? "It's relatively easy supplying white casements," Tony answers,
"but supplying a wide range of colours, windows, doors, conservatories and glass
at a competitive price, on time and in full, time after time, so customers make money
and grow takes more investment and skill. Doing that with a human face via our
friendly sales team gives us the edge. At least, that's what customers say.
We're determined to keep it that way."