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Establishing a strong foundation for future accelerated growth

Location:Global

Division:IMI Precision Engineering

Date:24 March 2017

Historically our Precision Engineering division had a complex and fragmented structure which has impeded its growth.

Over the last two years a great deal of work has been undertaken to resolve some of the fundamental issues and today the division’s structure is simpler and, as a result, the way it operates is more efficient and effective. During 2016 our Fix8 programme, an initiative specifically focused on reducing complexity and improving market competitiveness, delivered material benefits including a significantly streamlined product offering. Work continues to further rationalise the product portfolio with a view to offering customers better solutions delivered by fewer products.

In-line with our strategy to simplify the business and ensure that we have the most efficient platform for future growth, the division undertook an extensive review of its operational footprint. The review – named Project Janus – is now being split into two phases. The implementation of Phase 1 has already begun and involves those projects that can be executed quickly and with the least disruption to our business. This includes a structured programme of cost reductions, insourcing to increase machining capacity utilisation, simplification of the organisational structure and further leverage of our low cost European manufacturing operations. A second phase is contingent on market conditions and anticipates potentially substantial and more complex changes, particularly in areas such as Commercial Vehicle, where significant new project quotation activity exists. All of these actions will help to protect operating margins and improve our competitive position in what remains an uncertain market environment.