At Cleaner Products we are fortunate to have a crystal ball that works very well, we saw the need for change and set out to develop our brand with a completely new business approach, one that had shared objectives at the heart of the service style. To achieve this we had to be more transparent with our clients and our clients to had to lay their cards on the table for the formula to work, and it has. I am fortunate to have a relatively young dynamic team of individuals that help me deliver my ideas, without them implementing the changes our success would not have been possible, and without our clients adapting to the changes we would not be where we are today.
Is the British manufacturing industry in decline? no, in fact contrary to widespread perception the UK manufacturing industry contribute £6.7 trillion to global economy, this makes the UK the eighth largest industrial nation and the UK manufacturing sector makes up 11% of our GVA and employs 2.6 million people, at our current growth rate the UK will be in the top five by 2021. So in these unsettled times of Brexit and our ability to grow our manufacturing and export figures what do we need to do as a nation to support the British economy, buy British is the answer.
I can only reflect in detail about my specialised subject which is chemical manufacturing companies for the hospitality sectors, our brand Cleaner Products is a manufacturer of high quality cleaning and hygiene products and one of only a handful of British brands still flying the flag, we are however only a small fish in a massive pond. Last year we saw British brands being acquired by the global giants. Last year some of our largest brands like Zenith Hygiene being acquired by Diversey and Holchem acquired by Ecolab, we also saw Clover Chemicals being acquired by the Belgian giant Christeyns and this is all to maintain their global reach.
Over the next few years the dogfight between the janitorial suppliers will continue with them demanding reduced cost of products to gain the edge on price, the manufacturers who supply the ‘Janicheap’ sector will continue to dilute their chemicals further to meet the demand.
So where is this all heading and is it good news for the hospitality sector, in my view no, without solid British brands to compete with the ‘big boys’ they will have complete price control over our hospitality and the catering sectors. Large national multi site operations will be the first to be affected as it’s ‘the big boys’ who have the capability to supply their requirements, there are no other British brands that can compete on this level. We have been fortunate enough to take on a number of new clients recently that had been using products from Ecolab and Diversey and they have been astounded at the cost savings they are achieving in some instances up to 50% less than previous spend levels. We are also starting to see the effects of the takeovers with some customers reporting increases in prices as the parent companies look to recoup their investments, this is helping us further to achieve our consistent growth.
Our business model is nimble and able to make changes where required, we can compete on price and the service we provide is unique, our core business are high-end restaurants, hotels, the catering sector and a select few food manufacturing brands. Our regional distribution is growing steadily and we intend to accelerate this over the coming years. The Cleaner Products brand is growing by around 20% per year.
“It is not the strongest of the species that survives, not the most intelligent that survives. It is the one that is most adaptable to change” Charles Darwin.