Memorandum from Quadralene Ltd (EM 30)
I would like to submit evidence to your first
inquiry on the East Midlands Development Agency (emda)
and the Regional Economic Strategy (RES). I write as the Managing
Director (for four years) of an SME in Derby, manufacturing high
quality detergents and disinfectants but with a background of
20 years in FTSE 100 and Euro 500 companies latterly at UK Board
level.
My evidence is an account of a journey which commenced
with Business Link and has concluded (thus far) with the securing
of a Grant for Research and Development for the development of
a "second generation" (our company has already developed
the first) non-chlorine, sporicidal disinfectant/detergent to
significantly improve the NHS problem with Hospital Acquired Infection.
The emda services we have significant
experience of are: Business Link, UKTI, Export Market Research
Scheme, emda High Growth Programme, i-Nets, Medilink and
GR&D.
We have received support in the form of matched
funding, advice, networking and the R&D grant.
During the last three years, our turnover has
increased by a consistent 15% year on year (continuing this year),
exports have grown from 2% to 8% within 18 months, and our strategy
of exiting from commodity products to niche markets has meant
that over £0.5 million of sales have been generated from
the healthcare sector for infection control product—a sector
we had no presence in three years ago.
Our growth trend is good and is being sustained.
We recognise that emda has assisted us in our progress
and we have benefited greatly from the support we have received.
Had we not determinedly followed this strategy (into a sector
which is a cornerstone of the RES) there is no doubt we would
have not been able to continue trading, with the loss of 34 jobs.
With the exception of the GR&D, the sums
of money we have received have not been large but they have been
extremely helpful and have encouraged activity when we might have
been more reluctant to spend. Some of the support packages have
been easier to secure than others but all have had a tangible
selection process behind them. Some have been downright difficult
to secure (quite rightly, given that this is public money!). Without
exception, the delivery agents (people) we have dealt with have
had a passion for seeing EM business and the region flourish.
There has been an undoubted ongoing clarification, driven from
the top, on roles, responsibilities and the need to understand
product offerings from emda business support providers
over the last three years.
I am a great advocate of "key client managers"
so I am very happy about this—as an MD, my preference would
be to have contact with one person who can describe and facilitate
the full range of support offering to my company—again,
there has been good progress in simplification and streamlining
of the support process and there seems to be commitment to progress
further in this area, which is good to see. The RDA Application
processes can be long-winded at times but I am reluctant to make
this a significant complaint because were the process not thorough,
I would be even more worried that undeserving companies were being
invested in.
There is increasingly concise and helpful electronic
communication emanating from different emda department—another
good indicator that emda knows what it is about, that it
is aligned around the mission and understands how to get to those
it seeks to serve. There have been good initiatives launched quickly
and effectively in response to the global recession, which different
members of our team have attended and gained helpful advice.
SME's generate significant employment revenue
and innovation for the UK economy, it therefore seems self evident
that the Government would be well advised to continue to support
companies that have great growth potential especially during a
recession.
Sorting the "wheat from the chaff"
and being assured that resource and money are being well deployed
is essential. In order to maintain rigorous and wise stewardship
I would recommend that the Government ensures that the RDA's continue
to receive support and investment and are equipped with the best
qualified and resourced people possible going forward. This is
the only way to ensure that public money is well utilised. I believe
emda is a worthy recipient.
Finally, providing the delivery vehicle functions
well (which I believe it does, and is continuing to get better
at its task) and the client is worthy of support, then the logic
of continuing to help companies in the way that emda do
is irrefutable. Everyone benefits. At a time when there is great
scrutiny on less well deserving causes for the use of public money,
I think that emda would be high on my list of continuing
priority.
Andrew D Corley
Managing Director
Quadralene Ltd
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