Blog

Introduction
Bob Tapping, Managing Director, has been directly involved in the transformer industry for over 50 years now, with latter 2016 marking his golden anniversary in the business. During this time the panel building and electrical markets have evolved tremendously with Bob experiencing, and surviving, the rollercoaster ride that inevitably comes with running your own business. Bob has been a trailblazer throughout his career with topics of discussion in this article including the demands of playing one’s trade within the transformer industry, how materials have developed throughout the years, the changes that have occurred, where the products are/were coming from, challenges from abroad, keeping up with the market direction, and where the future of UK transformer manufacturing is heading.

Humble Beginnings
Bob’s career began in 1966, fresh from leaving school, as a 16 year old trainee transformer designer. In fact, Bob was offered the job as a result of the enthusiasm and natural aptitude displayed when occupying the same position during the work experience he completed during the previous year. Possessing an inherent interest in electronics, Bob was eager to begin forging a career within the transformer manufacturing industry. This, along with a strong desire to learn, led him to attend college for three years and evening classes for five years in an attempt to further develop his engineering, electrical engineering, and electronics knowledge during his formative years within the business.

Bob worked his way through the ranks during his 17 year tenure and ultimately held positions of Supervisor, Transformer Section Manager, and Company Work Foreman before leaving to pursue the idea of setting up his own company.

The Birth of ETE
In 1984, Bob founded ETE with the intention of focusing on five key markets: low voltage lighting, drives and controls, panel building, electricals, and general equipment manufacturers. The company began with Bob as the solitary member of the staff force and just two customers. By the end of the first year ETE had five members of staff and a customer-base of 10-15 businesses. An impressive turnover in the company’s first year was almost doubled a year later with turnover figures exceeding original expectations. As the reputation of ETE grew as did the clientele which saw the company’s revenue increase rapidly throughout the first ten years of ETE’s existence.

Bob (second from the right) picking up his 1986 Mid-Anglia Small Business Association Business of the Year cheque

Asian Invasion – Challenges from Abroad
By the mid-1990s, ETE had assembled a workforce of 40 individuals with business continuing to grow across all five of their chosen target markets. Very testing times were ahead however with serious competition beginning to emerge from abroad, particularly China and India.

These large overseas businesses were mass producing very similar products using cheaper materials. This approach could simply not be matched by ETE’s smaller workforce, factory space, and machinery. As such, many regular customers dropped ETE as a supplier in favour of the cheaper foreign alternatives. Having invested heavily in these product markets, ETE saw a 40% reduction in turnover over the next two years and, consequently, major losses to personnel with just 10 employees remaining.

Drastic action was required to salvage the company and Bob decided that the ETE vision was to be refocused on the drives and controls, automation, and panel building markets. These newly prioritised objectives were founded on the company strengths that could not be matched by the mass production of the Asian competition: first class-service, fast turnaround, and the high quality of the products. This was a brave move, with over £110,000 worth of tools and machinery being dumped in light of this refocus, in what was an extremely difficult time for UK-based electrical manufacturers. Many British competitors went bust as a direct result of this Asian raid of the UK market highlighting just how important it is to stay ahead of the game whilst concentrating on services that cannot be matched from abroad.

Almost twenty years on and ETE are still, predominantly, focused on these same markets, having developed a sizeable range of stock transformers and custom-built transformers to 500kVA.

Example of a bespoke 20kVA transformer

Technological Advancements – Staying Ahead of the Game
As with any industry, there have been a plethora of changes throughout the last 50 years. The advancement of materials, tools, and machinery are unquestionably the most important technological developments that must be continually considered. Innovative technologies are continuously emerging and the significance of maintaining a contemporary outlook cannot be understated.

The quality of winding wire, insulation materials, and bespoke materials (such as bobbins) has improved to a very high standard over the years. The heightened quality of modern materials has made the production process smoother with material wastage vastly reduced; improved core materials have helped to reduce energy losses making the transformers more efficient; and the overall reliability of the transformers is at a level that was unimaginable 10-15 years ago.

Most materials are now stocked ensuring a prompt turnaround and significantly reduced lead time. Unfathomable in today’s now culture, winding wire was previously only available on a three week lead time; a stark contrast to the present day where it is accessible immediately from stock with just a three-hour turnaround. The only downside from Bob’s perspective is that winding wire, along with the majority of ETE’s materials, is brought in from abroad.

When ETE first started out almost all of the materials that were used were made in Britain. This is far from true now however. With numerous overseas companies offering more advanced technologies, core suppliers and winding suppliers have gradually fallen by the wayside and eventually disappeared. ETE now bring clamps in from China and Italy with terminals imported from Germany and China. Nuts and bolts are one of the only things still bought in from the UK. This is saddening as Bob believes the UK has the potential to compete with the likes of China, but feels many companies have been stuck in the past, reluctant to change, for too long which has ultimately contributed to the downfall of many British manufacturers.

Calculated risks must be taken to stay at the forefront of the industry; however, the lead time, quality, and cost of the product must all be considered when contemplating implementing new materials, machinery, or designs. Keeping up with the ever-evolving market is something ETE have strived to do since the company’s inception and it is with this desire to stay at the forefront that the company has left many competitors in the dust.

The Growth of ETE
As the mid-2000s approached ETE had well and truly recovered from the loss of business to Asian competition in the mid-to-late ‘90s. Bob was striving to push the business forward once more and decided that the company’s current location no longer fit for purpose. In 2004 an opportunity arose to move to a much larger unit on the outskirts of town which Bob grasped with both hands, despite reluctance from a number of advisories.

The move acted as a breath of fresh air providing a blank canvas to be moulded in sync with Bob’s vision for the company. Each aspect of the transformer manufacturing process now had a designated area. The offices were three times larger than previous allowing for the addition of office staff, increased storage space meant more products could be stocked reducing lead times, and further high-tech machinery could be added to the production areas enhancing efficiency and precision. ETE began to flourish and 2006 saw Bob purchase additional storage space as demand for the company’s stock transformers, power supplies, and thermal management products began to increase. ETE now house over 240 stock transformers and more than 650 accompanying products available for immediate despatch.

ETE’s stock transformer group

The Future of the Transformer Manufacturing Industry 
With Bob gearing up for retirement before 2020 he has assembled the next generation of management to ensure the company not only survives, but thrives. There are many things to look forward to from an ETE perspective with UL approval being considered as well as an intensified interest in enhancing the amount of export the company participates in.

Bob is adamant that now is the time for the UK to take advantage of the current economy. The drop in value of the British Pound Sterling has meant that buying from abroad is now more expensive in comparison to buying locally. This has given the opportunity for British-based manufacturers to add to their local customer base by offering prices that can’t be matched by European opposition. Additionally, prices will now be a lot more competitive to businesses overseas giving an enhanced opportunity for export. It is time to take the bull by the horns and really push forward the benefits of buying UK-made products. Bob believes the government also have a big part to play in raising the profile of British manufacturing worldwide and argues that the importance of maintaining a strong UK manufacturing base should not be underestimated.

Finally…
The main pieces of advice Bob can give from his 50 year career within the transformer manufacturing business is always be open to change; maintain a positive outlook; promote the services that make you a unique and reliable supplier; and, most importantly, enjoy being part of this fantastic industry.

30 years on… Bob in 2016

Tony Harper
Marketing Manager