One of the Black Country’s leading aluminium foundries is reaping the benefits of a move to servitization and forecasts that it will add nearly 10% to its annual turnover.
Alucast, which employs over 100 people at its continuously growing factory in Wednesbury, has invested nearly £500,000 in new technology to ensure that it now offers customers access to Magmasoft casting simulation, prototyping and heat treatment.
The company has also expanded its machining capacity to offer 5-axis machines and non-destructive testing, including X-Ray and dye-penetrant testing.
This strategy is boosting sales and the management team forecasts an additional £800,000 of turnover through customers accessing one-off services or using one element that then leads on to volume production in sand, gravity and high and low pressure castings.
Tony Sartorius, chairman of Alucast, commented: “Our business model was already unique in that we offered fully finished and machined castings from one source, and we decided to build on this by embracing servitization, developing new services that would deliver extra revenue streams.”
He continued: “Working with Aston University, we created a five-year strategy that would see us add a different offering every six months and we have now got to the stage where our customers can tap into anything from simulation software and advanced metrology to our recently launched full assembly offer.
“This approach will soon account for £800,000 of our turnover, which is roughly 10% of our annual sales. I fully expect this figure to grow as more people hear about what we do.”
Alucast offers sand, gravity and high and low pressure casting to a client base that spans automotive, fluid power, electrification and hydraulics.
The company is providing technical support for one of the world’s largest automotive engineering agencies and full casting assembly for a 4x4 manufacturer.
The firm, which has recently been re-accredited to the TS16949 automotive quality standard, is also continuing to support carmakers and tier 1s with structural lightweight parts for use in next generation vehicles and electric cars.
Employing more than 1,750 people across 13 different factories, the Manufacturing Assembly Network can offer every engineering discipline, including aluminium casting, automation and control systems, forging, plastic injection moulding, contract electronics manufacturing, precision machining, high-volume pressing, tube manipulation and welded assemblies.