Tailored to the customer

The figures for Combilift’s new factory in Co. Monaghan, Ireland are impressive. Built at a cost of €50 million, the 500,000 sq ft facility in a 100-acre site with room for expansion, will allow Combilift to double production.

The manufacturer has employed an additional 230 people since it announced plans for the factory in 2015. It has 550 employees in total, with a further 200 employed by sub-contractors within a 40km radius.

Four 90 metre moving assembly lines produce a finished truck every 15 minutes. Combilift currently exports 98% of its products to 85 countries through its 250-strong international dealer network.

But perhaps the most interesting aspect of the story is the ambitious growth strategy based on a highly developed implementation of the mass customisation approach to manufacturing.

Managing director Martin McVicar, said: “Mass customisation is the new frontier for both the customer and the manufacturer. Increasingly customers are expecting products to be tailored to meet their needs. Forklift producers that offer customised products generally produce low volume, but Combilift is setting the benchmark by offering the mass production of tailored products, resulting in a strategic advantage for our customers. Traditional forklift manufacturers focus on high volume mass production of the same products. We evolve with our clients, producing new products each year.”

Combilift also offers a logistics and warehouse design service – Combi-Connect – so engineers and customers can collaborate on material flow analysis and 3D animations.

Martin said: “We work closely with our customers and dealers to identify solutions that best match their individual specific needs. Combilift invests 7% of its annual turnover in R&D to enhance its customisation capability. We are intensifying the collaboration with our customers in the warehouse and material handling sectors. The intention is to maximise ROI.”

In a wide-ranging Q&A session at the official launch of the new facility, Martin said customers achieve ROI on average within 24-36 months.

He also revealed that Combilift is debt-free and was re-investing profits in the business.

“We want to double in size in five years,” Martin said. He envisaged that electric models would drive most growth, but added that he expected Combilift would be selling more IC trucks in five years as well. Interestingly, Martin added that much of this growth will come from ‘scaling up in developed markets’ such as the UK, USA and Australia, where safety is a major driver, and space optimisation is often a very significant concern for customers.

Aspects of the Combilift business model are basic. The products are “easy to service anywhere in the world. Any competent garage can service them”. And yet, Combilift is not shying away from the innovations in automated handling.

Martin continued: “The Combi CS pedestrian range will have an AGV variation, using contour mapping and GPS for navigation. We have it installed in a few locations, but it has not yet been launched. We want to be ready to sell it worldwide before we launch it, and we needs more software development staff to help integration with customers’ WMS.”

Combilift is keeping its old facility, and plans to use it for refurbishing forklifts. The company is engaged in buying back old equipment at present. While I was over in Ireland, I had a chance to speak with Martin and co-founder Robert Moffett.

I asked them what they saw as the key drivers for the remarkable growth they have enjoyed in the 20 years since forming the company. Martin replied: “We have kept innovating and have focused on concept trucks, rather than mainstream models, and have therefore been able to find a niche. Safety and space concerns have meant we could drive solutions.”

Robert had a simpler answer. “Martin. He’s relentless.” Martin added: “It’s not just me, we have a lot of relentless people here,” and having seen the company up close, I can’t really argue with that.