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Driving Competitiveness Delivering Growth and Sustainable Jobs Martin McVicar

Entering Export Markets The Challenges And The Pitfalls · Company Background • Combilift, Monaghan • 260 employees • €120 million turnover • 7% of turnover in R&D • 99%

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Driving Competitiveness Delivering Growth and Sustainable Jobs

Martin McVicar

Established in March 1998 by Martin McVicar & Robert Moffett

2013

Company Background

• Combilift, Monaghan

• 260 employees

• €120 million turnover

• 7% of turnover in R&D

• 99% Exported

1,500 kg to

70,000 kg Capacity

Combi 4- Way

Combilift Market Trend

2012 - 15% Market growth

Employee Numbers

2011 World Forklift Truck

Ranking

Combilift

European

Dealer

Map

18% USA

15% UK

10% Germany

7% France

4 x Markets = 50%

• Libya • Malaysia • Mexico • New Caledonia • New Zealand • Oman • Russian Federation • South Africa • Thailand • U.S.A

Combilift Worldwide

• Australia • Algeria • Brazil • Bahamas • Barbados • Canada • Chile • China • Europe • GCC • Iceland • India • Israel

18,000 units in operation globally in 75 Countries

Export Challenges

• Language • Culture • Transport (getting product to customer)

• Customs Clearance (Outside EU)

• Regulations/Standards (USA V. European)

• Financial Risks- Plan for longer payment terms

Designed to be Containerised

• Innovative Product (New Combination) • Concentrated on niche export market.

• Minimise Marketing costs into new markets.

• Monaghan = “Can Do” Attitude

• Every Customer should be a referral customer

• Robust Simple Design – Export to any Market

• New Product to Market Quickly(12 Months)

Competitive Approach

• Required a Different Sales Strategy for each market:

– Europe - Advantage was Space Saving

– U.S.A. – Safety - Safer product handling

– Scandinavia / Canada - Outdoor capability

• Initially only appointed English speaking dealers.

• Combilift formed a joint venture with a forklift dealer in France

Global Distribution

Branded Combi-Amlat for France

Free of Charge Layout Service to visualise your warehouse and optimise storage.

LOGISTICS – SOLUTION PROVIDER

LOGISTICS – SOLUTION PROVIDER

Research & Development

•Strong R&D team including directors.

•Work closely with customers to develop

products

•Invest 7% of Turnover in R&D

•Close Link between R&D and Sales &

Marketing

•Dedicated R&D Facility

Combi-CB

Side Ward Forward

Aisle-Master

Combi-SC

• Overhead Guard Testing.

• Stability Testing.

• Certification

ANSI B56.1

Built to Meet Global Standards

Making it Easy to Export

• Innovation in getting Product to Market • Price product in Customers Currency e.g. US $, Can $, Aus $, Stg £, Euro • Delivery cost included within Price. • Custom clearance included • Suggested Retail Price Lists in major markets. • We find the first users in new markets ourselves

Multiple Dealers in Large markets

Reasons to Export

• Less reliant on a single market. • Global companies will want to deal with global

vendors. • Feedback globally assists with R&D. • Growth can take place without developing

additional products.

Lean Focus for the Future

• 6 months ago we started a Lean Transform project supported by Enterprise Ireland.

• To eliminate waste by more efficient use of labour, space and time

• Reduce delivery time/ Improve Quality • First project: Aisle-Master Production line (improve efficiency)

Aisle- Master Production

• Increased run rate from 12 to 17 units per week (+ 41%) • Direct labour hours per unit reduced from 49 to 37 • Target is now 4 units per day

Aisle -Master Production

Areas of focus to achieve 4 per day • More robust production schedule • Cross training of operators • Supply to line • Production quality

Lean Improvements Before 6 months later…

If Combilift can do it, You can too.

Martin McVicar Thank You

www.combilift.com