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Manufacturing Leaders
Currently the Number 1 Manufacturing Podcast on Spotify and Apple Podcasts!
Mark Bracknall, Founder of Theo James Recruitment is the host of Manufacturing Leaders.The UK is still a powerhouse in Manufacturing & Engineering. We speak to those who are helping to make those firms a success. By motivating, inspiring and managing teams.Are you new to management? Are you keen to hear from those who are dealing with the same day-to-day challenges you are facing?In this podcast we get inside the minds of the Managers in Manufacturing & Engineering, and understand how they get the best our of their teams and make Manufacturing & Engineering great.
Manufacturing Leaders
Building a Manufacturing Legacy: Inside Egger's 40-Year Success Story
🎙️ Elfie, Director at Egger Hexham, shares how strong values and bold leadership have built one of the North East’s most respected manufacturers.
🔹 Family values & respect shape a culture where generations choose to work
🔹 1,400 applicants for their apprenticeship program – and 20% of staff are ex-apprentices
🔹 Long-term thinking & reinvestment are core to Egger’s success
🔹 Sustainability has been central to their strategy for decades 🌱
👇 Like, subscribe, and get in touch with Mark and the Theo James team if you’re passionate about your career or your people.
#ManufacturingLeaders #NorthEastJobs #Egger #Sustainability #Leadership
Please subscribe to the channel for more content! Theo James are a Manufacturing & Engineering Recruiter based in the North East, helping Manufacturing and Engineering firms grow across the UK. Please call us on 0191 5111 298
Hello and welcome to the episode of the Manufacturing News Podcast with me, mark Bracknell, marketing Director of Theo James Recruitment. Today we're welcoming on Elfie, a director of Egger based in Hexham, the Northeast. Egger are one of those businesses with a fantastic reputation, a third generation family-run business. I couldn't wait for this one. I recently spoke to their recruitment manager, who told me that they had 1,400 applications when they were looking for new apprentices. Any business that has that level of response to an apprenticeship scheme shows just how hard they've worked to build up such a good reputation. So I couldn't wait to lift the bonnet and talk to Elfie about the culture, their leadership, their sustainability about the culture, their leadership, their sustainability, their plans and everything in between.
Speaker 1:This was a real fascinating episode where you can learn a lot from a relatively large business but ultimately, things you can put in place in your business today. A lot of it for me was about the culture and the respect part how leaders should respect their staff and give them a safe space to learn and to grow, and this was probably the overarching message for me how important that is in business. But, as I say, this is just a real fascinating episode where you're going to learn a lot about such a brilliant business in the Northeast. And obviously we talked about challenges within the industry, the future and opportunities in the industry as well. So please sit back, watch and listen and enjoy. Please, please, please, just hit like or subscribe or comment. It really helps grow the show as well. So thank you very much. Hope you enjoy the episode.
Speaker 2:Thank you.
Speaker 1:A massive warm welcome today to Elfie. Elfie is the director at Egger, based in Hexham, an extremely well-known manufacturer in the Northeast. How are you, elfie? Elfie is the director at Egger, based in Hexham, an extremely well-known manufacturer in the Northeast. How are you, elfie? Okay?
Speaker 2:I'm all right. Thank you for having me, Mark. Fantastic to see you today.
Speaker 1:Absolutely. Thank you very much for coming on. So loads to talk about in this. I'm really excited by this. One First question, though, is the same question I ask everyone that comes on the show what?
Speaker 2:does it mean to you to be a leader? What do you say? Yeah, this is uh, it's such a big question, isn't it? And and there's so much literature on it where it's defined what a good leader is. But it is still a valid question because it's a very personal thing as well. Yeah, so for me it's.
Speaker 2:You know, there's all the obvious things, but fundamentally, in order to become a good leader and I think it's a journey you are not a good leader. It's this continuous working on yourself, but I think you need to align with the mission and with the core values of a company that you work for, that you represent, because that allows you to be naturally in your comfort zone and naturally have the drive that you need when things are not running smooth as well. So it just keeps you going if you align from the outset. And then, of course, there's a huge part to make sure you you align your team as well and work with your team and look after your team, because, at the end of the day, it's the team that makes the work and makes a company and keeps the spirit and makes us successful. So it's really being there for the team.
Speaker 2:It's a bit like working on two extremes. I always feel you have to have this vision and know what you work towards too. And then, on the other end, it's continuously working on the foundation, making sure we have this strong base where we work from, where we improve from and strengthen that bit so you don't roll back when sometimes, tough times come along as well. That's how I see it. So it's more being on both ends you know this vision ahead, having a strong foundation, and let the team work in between, so they've got a base to work from and they have got a direction to go towards to as well. I think that, yeah, that, I think, is key. And then in between is, yeah, the framework to make sure people can be their best. I think that is key.
Speaker 2:To allow people to bring themselves into work, to shine, to take pride in the work and really support them to be the best they can be, so when they go home, they feel achieved as well. I think that is so important to have a successful outcome to everything we have to deal with on a day-to-day basis. Really.
Speaker 1:Yeah, 100%. I guess what you're talking about there is empowering and empowering the staff and people feeling empowered and the vision and it's an interesting one, isn't it? Because I completely agree, it's so important to work for a company which shares your values and that works both ways. So many companies, I think, don't do it right. I think so many companies maybe have good intentions and they have values on the wall, let's say, but actually until you live and breathe them and talk about them and hire against them and train against them, then they are just, it's just right on the wall and actually it almost becomes counterproductive because people don't trust them and don't trust the fact they are.
Speaker 1:We'll go into it and we'll probably go back back to front a few times, but Edgar have had a fantastic reputation for being a brilliant employer, as someone who stays people. You know, somewhere people stay for a long time, which I don't think is normal. Nowadays. People tend to jump from job to job a little bit because they see that's probably the quickest way to progress. You've been there 19 years, 18, 19 yeah, yeah, 19 years now.
Speaker 1:Yes, yeah, and imagine you're surrounded by people who've also been there for a long time, when it's much longer than me, in fact actually as well, and so exactly this, and that is rare. When did it come apparent to you that they shared your values? What would you say? And how is it obvious?
Speaker 2:Yeah, it was a journey. I think I was very blind to this initially. I'm an engineer by heart, I have to say, and as an engineer you're not so much tuned into these leadership topics. Maybe initially either, you've got a problem, you want to solve it, and you want to solve it to the best of your abilities and make sure you know, and then straight on to the next project. You never reflect back either. So I think this is how I joined as well. But but there were certain things which really stood out early for me and I've worked for other companies before, not as long as I've worked for egger, but what stood out was this long-term thinking.
Speaker 2:So it is family value is really one of the core values that we have. This is so strongly anchored and it doesn't mean that it. What it means, I think, for us is thinking in generations, and that stood out. So it's really. We don't just do short-term optimization for the sake of it. There's always.
Speaker 2:Is it the right decision for the next generation, for this longevity and we have been here for 40 years, we want to be here for another 40 years and we want to provide good income, good jobs, not just for the current teams, but also for the next generation that is coming in. We have multiple generations in our teams as well, where the grandfathers and the fathers and the children are now working in the organization and carry this through, and this is really fantastic, and investment decisions were made this way as well. So the Egger family is really really strong in reinvesting back in the business and again, I think this is rare. This really stood out that they want the business to continue to grow and the money that we make in terms of profit is being reinvested back into the business. So we have got fantastic state-of-the-art technology and this is nice to work with. As an engineer, you have to get the new technology to play with, to work with, to work from. So this reinvestment and this long-term thinking, that is really the first thing that stood out for me.
Speaker 1:And then the other aspect is respect.
Speaker 2:This is a strong core value for us as well. It's really how we interact with each other, how we treat each other. This is so important as well, and I think this is really where you need to fit in as well. You need to, you need to have similar thinking to to make sure you, as a leader, you carry this through and you ask for this in your teams as well so disrespectful working with each other and it doesn't mean we're conflict free, because we need to debate things and we need this healthy debate around subjects.
Speaker 2:But how we treat each other through through all you know departments, hierarchies, with whichever way you want to look at it that that was different, that that was different from the moment I arrived here on site and then you could feel it, that there was a different feel to the site and to working here.
Speaker 1:Is that something you think you have to recruit people who already share those same values and have that same respect, or is that something you think you can train? Do people come into that environment and change because they see what's around them, or do you actually have to select people that already have those traits, would you say?
Speaker 2:I think it's both. I think you know, when somebody has those traits already, they just very quickly naturally slot in. But but there's a critical mass as well, isn't it? If you've got enough people that that display, that, that carry that, that value, that then then small people, you know, if the odd person is not fully on board quite yet, you naturally slot in because people like to blend in, people like to be part of a group and you're being influenced by what is around you as well. I think. So there is a mix of both, but you need to. Recruitment is much easier, of course, if you recruit the right people. It's so much easier all the way through. But then there is a critical mass topic, I think, in order to make sure division and the way we do things is lived by everyone and respected by everyone as well and adhered to by everyone as well.
Speaker 1:And it comes from the top, doesn't it? I mean, if your leaders aren't showing those traits, then the staff won't. And I think it's interesting what you said there about the conflict not the conflict piece, but the debating piece, because sometimes we have feedback that um rooms, your meeting rooms, are a real place of of negative conflict and there's and people are talking over each other and not giving each other time to to debate. That's not healthy. But you still have to debate things. It has to be someone who's going to challenge people. I would say have you seen, could you? I know you've been there for a long time, but do you think there's a key difference between how a business like Egger would debate a big change in a business that might be bringing something sustainability, change or something that's cost a lot of money versus a different company who they perhaps don't allow people to give the floor to, to debate or challenge, would you say? Is that something that that is obviously different to ego or something you've worked on?
Speaker 2:there are different topics, that and we are a large organization, we are operating globally and then the strategy is really set on group level but is being shaped. And then this is plant management teams. We have a voice. I think we have got enough exchange forums where where we can forward our ideas and then suggestions and opinions and thoughts as well, but, but. But there's a group management level which really sort of gives the direction as well.
Speaker 2:But a healthy debate is certainly what we live here in the teams as well, because, a it reduces blind spots and, b it can just make the decision-making process At least. You have explored lots of different opinions, lots of different ways of thinking as well, lots of different angles. If you've looked at something and you go in then once a decision is being made with this confidence that it is the best decision you can take at this moment as well. But you've explored all sorts of different angles. So one is, uh, reducing blind spots and the other one is being then quite confident to carry that decision forward as well. So in in terms of having but, but it's different to how we debate things compared to other companies. I have to say I'm not too sure yeah, I suspect.
Speaker 1:Suspect it is. Yeah, in a good way. The um manufacturing is particularly northeast. Well, I'm using northeast as a as an example. It is underrepresented in certain minority groups and and there's still not enough good you know female leaders. There's not enough female engineers coming through, there's not enough young engineers coming through, there's not enough young female girls coming through the STEM route, unfortunately. Why do you think that is such an issue and how do you think we start to tackle it? Because something needs to be done, because it's still very male-dominated as an environment, maybe not as much as it was, but it still is.
Speaker 2:It still is, yeah, and it does need to change, because we do miss out on a lot of talent. Isn't it Really why everybody is desperate for skills and talent to come in and then to sort of not being able to tap into 50% of that pool? This is quite a challenge. Change is hard sometimes, isn't it? We are shaped by cultural influences, maybe in the Northeast even a little bit more, with all the mining heritage and whatnot else, so maybe it just takes this a little bit longer. I think there's a change taking place, though in schools. I think the shift seems to happen sort of teenage years onwards.
Speaker 2:I don't know it does when people start choosing the university subjects where, for some reason, girls then maybe feel that it's not for them, whereas early on they're really strong, and it's proven as well, isn't it? They're strong in maths and in physics and in chemistry and they show great aptitude and interest for it, and then somewhere along the way, they feel like it's not quite for them, and I don't know what the answer is really.
Speaker 1:Yeah, you're absolutely right. That is exactly where they're lost. It's that time they are typically maths, science, you know they are strong in those subjects, and then it is around that age where there's a big drop off, that 15 to 16, do they feel that, you know, are they aware of the types of careers you can have in manufacturing, engineering? Do they still think it's you mentioned, that sort of you know, mining type code? Do they still think that it has to be a dirty, heavy environment? Because it doesn't? And I still think there's a lack of awareness.
Speaker 1:I do quite a lot of work with UTCs and schools in the area to try and bridge that gap, because I still think there there's just a real lack of of clarity behind the careers you can have in leadership, in management, in human resources, in engineering.
Speaker 1:You know it, it's, there's so much which, you're right, there's 50, the market there, the pool of really good engineers. It's a massive, it's a massive shape. I am starting to see things shift, you know. I think there is more. You know there is more female, female engineers and there's more female leaders than there ever were before, which is probably the big, the most important shift, because if you are, if you are going to work for a business and all their leaders are male, you know let's, you know white, british, male then you know it might put certain minority groups off working for that company and until that, until you break that cycle, it's difficult to to do so. Um, have you found it challenging being a female in manufacturing environments, or or not? Or is it the fact you've chosen the right businesses to work for?
Speaker 2:No Again, the way I was raised it probably goes back to childhood in my case. No, I had the great, great benefit of working. I grew up in an agricultural business setting. There was a family business and everybody joined in and everybody got stuck into what needed to be done. Yeah, you're the brain, you had two hands. You were expected to join in, and my great-grandmother did that, and my grandma and my mom and then all my male uh relatives of course as well, so that we didn't differentiate. It didn't stand out that females only did one particular type of work and males did another type of work. So all through my life I didn't have this preconception that girls are not able to do certain type of work full stop, and we were always encouraged to do our own way as well. So I was completely free to choose what I want to study as well. So I came in I I think into work life really being quite blind, yeah yeah, yeah maybe in the minority and no, no, no preconceptions of over anything yes, a really, really strange.
Speaker 2:It's only later on, as I progressed through my career, it stood out more to me personally that I stood out as well. But even when I started working, especially at Egger, I wasn't treated differently. There were jobs that needed doing and I joined in just as anybody else would join in, so I wasn't. You know, I wasn't selected to do certain things and not other things, or vice versa, so it was just being part of the team, and I think that is really important yeah, absolutely.
Speaker 1:You mentioned before. You are, you're an engineer at heart. You're an engineer. You're fascinated. When did the shift become for you where you wanted to be a manager, a leader? Was that something early on that you thought the path was going to be, or was it just opportunity when? When did that arrive?
Speaker 2:no, that was that. That really was a gradual journey. I have to say I don't think I necessarily so. 20 years ago, if you'd asked me, if I'd been in a position I'm now, I would have said no, don't think so, not for me. No, not for me to grow into this role, more than maybe I saw it myself at the time.
Speaker 2:The way I always worked with teams, it was always with a team rather than really leading a team, it was more. You know, it's role modeling something. So you're just part of the team. You do your own thing. You want to make sure that you don't let somebody else down. I think this is how I approached work all the way through. So it is always this responsibility what I do counts because it counts for the team, and I think this is how I progressed. And so this is, I think, how I, bit by bit, started to get more responsibility and then just had opportunity really to try what I'm capable of as well in bigger and bigger projects. So it was really, I think I had the right managers at the right time as well, who believed in me. That was really fortunate, I have to say, and that is so important really, because you need to have this support and that backing as well, and that belief from somebody else, sometimes into you as well, isn't it really?
Speaker 1:Yeah, absolutely. I think we are typically good managers and bad managers. For both reasons make us who we are. I think sometimes if you're managed poorly, you understand how that makes you feel. You never make someone else feel that certain way. It's worth reflecting sometimes, I think on on good managers and why they're good managers and what it was about them that you felt was was good management. Can you you don't have to name me, can do who do you think the best manager you ever had was, and why?
Speaker 2:what, what, what traits over their leadership you think helped you progress, would you say yeah, I think I'm very fortunate that I had uh, that I had a really few good managers still have actually, um, it's it's having this trust that you, you know they just let you run with it, but then, when things go wrong, they are still there for you. So it's this when you already beat yourself up that something is going wrong or has gone wrong or hasn't quite gone the way you'd like it to go, in hindsight is they're there and they say, okay, let's just, you know, work it through. Where do we go from here? How do we make it better? It's having people that back you when things go wrong as well, and they have the faith in you that you've learned your lesson and it's not going to happen again and you grow from there. I think that is really important. That probably stood out.
Speaker 2:So it's not somebody who was in and you know, is motivating me every day. I don't need this. I underthink my team as well. Now that is really working with me. It's not that we need this constant checking in necessarily that we need this constant checking in necessarily. It's having this freedom to do things, to bring in your own way of doing things, your own ideas, implementing them and really show and then take pride in your own work, I think. But then have this backing when things go wrong, not to be told off straight away, oh my God, but to really say, oh, that hasn't worked out, what are the learnings from it? How do we grow from here? So I think this is where the manager stood out for me, that that were there. And then the very big thing and and he really stood out for me is I think this is the challenge all female leaders have is when you start having children, you have to have this conversation that you're pregnant and you're in the middle of a big project and you know it's an important project and now you
Speaker 2:have to go and say you need maternity leave, and I was really nervous and there was no need to be nervous, but I was still nervous and and all he said was congratulations, what fantastic news. And that's all I needed to hear, really, that he never made me feel that, you know, this is a career stop now, or that there is, you know, disruption to the business and it has to be dealt with. It was just this fantastic news, elfie, this is great for you, and that was that in the first moment. So that will forever stand out, I think.
Speaker 1:I think that's lovely, because I think what I'm when I'm listening to that I'm thinking, what I take away from that is the feeling of safety. The good managers have enabled you to have a safe space where you can make mistakes and you can do great things. Because I think if you don't create that environment and someone feeling safe that they can, they can be autonomous, they can make mistakes, they can do great. I don't think people ever break past the norm because they just want to stay in that box. But you know that's what you've created and obviously that's what you'll pass on to your teams. But and obviously with the maternity thing, absolutely they know that is just. It's rare how we, how many people, are just human in business they see business first and not the, not the. The human in front of them is going through such a amazing, amazing, brilliant thing where the default for most businesses will just be to see the problems before.
Speaker 2:Yes, exactly.
Speaker 1:So yeah, and I think to that to stand out is a good lesson for people actually. It's a good lesson for leaders actually to think I'm a human first. Apologies for interrupting this episode with a very quick announcement about my business. Theo James are a specialist talent provider specifically to the manufacturing and engineering sector. I'm incredibly proud of what we've achieved since our inception in 2015. We specialize in roles from semi-skilled trades right the way up to our TJ exec search arm of the business. Both in the contract and permit side, we offer both bespoke one-off campaigns for heart of full roles or a full partnership service where we become an extension of your business.
Speaker 1:For any information, please get in touch with me or the team. I hope you enjoy the rest of the episode. Thank you, before I think about you know anything else essentially and just be there first, and so I think that's a really nice, nice point. You mentioned right at the start about the generation with Eiger and generation to generation. I was blown away by that. I came to a networking thing about six months ago and the plan manager stood up and told the story about Eiger in terms of an absolutely fascinating you know how it has evolved with.
Speaker 1:Sons grand, grand and all. I thought it was amazing. Can you tell me briefly about that for people who don't understand the story about how Egger started, because essentially it's a family-owned business. Now, which is now owned, isn't it, by other families?
Speaker 2:It's still family-owned. Yeah, so we started off in 1961 in Austria. Yeah, it grew out of a sawmilling business really. So Fritz Egger Sr and this is our overarching motto really felt wood is way too valuable to be thrown away. And then you know, it was the sawdust shavings at the time and this is how the first plant started, and then their sons are running. They then carried on and really expanded the business and now we have got the third generation of the Egger family in group management actually.
Speaker 2:So there's really this continuity of the family being present within the business as well, and they're very approachable, they're known, they will walk around the shop floor, you know, they speak to people.
Speaker 2:There's this very personal link where it's clearly understood whom we work for and who is success decision makers behind the business as well, and they're so committed to reinvest in the business.
Speaker 2:So it's not just keeping the business for the family obviously going, but it they really place importance on making sure there's generations within the workforce as well, and you can see this in all of the older sites not just here in hexam, or enough for 40 years as well, that the family is valued also in a sense of how the business is run, not just that it's family-owned, but also that we provide a workplace for everyone who is working in the business that is lasting and that allows the next generation to come in. And for me it's really a good sign, you know. It's a sign that people like where they work, because if you recommend to your family, to your kids, that you know this is the place to go. This is a place where you can grow, where you can develop, where you're being invested into, where you've got a safe place of work as well, that you can plan your own personal future on. This is really good sign of a healthy company, in my view yeah, yeah, it massively is.
Speaker 1:And I think what's interesting is how organic it is as a business, you know, and that that reputation, obviously reputation it has north east but obviously hexen, you know, everyone knows, there's no doubt about that. It's, uh, it's obviously a huge part of its heritage. You should, should do anyway. I mean a good example of that. I spoke to the recruiting manager at Egger last week just to catch up and see how things were and he said he's recruiting for apprentices right now and he had 1,400 applications. That is not normal, you know, that isn't, and that just underlines exactly what you're talking about there Someone's son, someone's grandson, you know word gets out. This is the place to work. You know that is. I've never known that. That's different, it is.
Speaker 2:And we are proud of, especially of our apprenticeships as well, because apprentices and I don't know if that has been mentioned already, but apprentices and undergraduates graduates they are 20% of our workforce now ex-apprentices so we really really grow the talent through our own recruitment process and really grow them from within the business as well.
Speaker 1:Which is fantastic, because it's a massive problem in manufacturing, because that, you know, and it's not always the business's fault, that's not the case. There's issues now for businesses to try and stay alive. Right now there is. It's problematic, but apprentices are the lifeblood of the next generation of manufacturers and engineers and everything in between, so it is absolutely crucial. So it's brilliant what I could do for that, and I think if people are listening and don't have that apprenticeship, they just need to do everything they possibly can to do so. It's the only way to ensure the future of it. Something I also know which has been at its core is obviously sustainability, which is obviously something which is important now in the industry, but it has been important for a long time, hasn't it? That that seems to be something that's underpinned and been a huge value of the business for probably a long time it is the core of our business, isn't it?
Speaker 2:uh, we, we make more from wood. Wood is so key to it, is the, the, the resource that we work with. Our motto is making more from wood. That has been deeply ingrained in our business ever since, and for us, sustainability, that's a natural part of the business. It's not just, though, having the sustainable products, so it's the product side side but also in terms of renewable energy, I think we have been way ahead before net zero became buzzwords and requirements.
Speaker 2:Now, of course, as well, this was, uh, you know, 20 years ago already.
Speaker 2:We substituted natural gas with residues from the manufacturing process that were not suitable for the board manufacturing process.
Speaker 2:So even those days when it wasn't really common in terms of biomass combustion, as it were, we utilized those parts of wood in an energy efficient way. Still as well, and that is really important to us as well, is this hierarchy of wood use and making sure this is acknowledged as well that resources should be allocated first at the best use and not just for burning straight away as well. So for us, it's really important sustainability all the way through. So it's the product side, it's the energy side, and we have signed up to the United Nations Sustainable Development Goals as well, and that, of course, encompasses much more. So people always think it's just the green part of it, but it is about providing good workplaces, it is about innovation and industry and, you know, providing income for families as well, so it's quite a widespread within the sustainable charter as well, rather than just green energy and sustainable products, and I think many people are not tuned into this. Sustainability means a little bit more and it's a little bit wider really.
Speaker 1:It's a social piece, isn't it as well?
Speaker 2:Absolutely. It's the ecological, the economic and the social piece. Exactly. It's all three that need to come together really.
Speaker 1:Which ties completely into the culture and the core values. Again, it ties it right back, doesn't it it what we talked about at the start. It's all encompassing if you to work for, if you suddenly find yourself walking into another business which was nowhere near where Edgar are on that sustainability journey, are there anything you would start? What I guess would be the first thing you start with, because companies are still on this journey and some companies are starting this journey still what are the most important things you think that companies should, should look at? To just just get start point one foot in front of the other with that journey. What do you say?
Speaker 2:I think you need to understand where you are for a start with, isn't it? It's really what? What is your impact, what is the impact of your operations, what's the impact of your product? You need to understand where you are for a start with. That is, I think, the very starting point, and then take it in small steps. Yeah, because it needs to be financially viable as well. To completely remodel a business can be very challenging and very cost intensive as well, but but really start looking where you can make changes in small steps for a start with, and then it comes naturally built from there. I think the challenge of course we have now is, especially with the net zero topics, is um, time is galloping away, isn't it?
Speaker 2:yes, now that uh the impacts of of climate change now and I know there's different views on this, but I I think it's it's you can't really deny that floods are increasing, storms are increasing, wildfires are increasing, and I think if we as a society and that includes businesses and that includes regulators and politics and government decisions as well don't get it right, in the future we all will be forced to invest capital in dealing with the aftermath and the the effects of climate change. Yeah, rather than directing the capital now to to where you can prevent it and and do something productive with it, rather than just whatever putting up flood barriers or or having to tidy up the aftermath as well it's hugely expensive or just having to pay high insurance rates and all these type of things.
Speaker 2:So I think it's quite key that the right decisions are being made now, which makes it even more challenging at the moment. Again, it doesn't really make you competitive on a global scale. Yeah, yeah for the, for the uk, and in europe as well, to the degree but uk certainly as well. It is, uh, remaining competitive and making sure that, as a manufacturing sector, you know we get this balance right of taking the right actions now, at the same time making sure we keep going and you've touched on that there, which I like to pick your brains on.
Speaker 1:You know where do you see the future of manufacturing? Because there are some. There's some opportunities and there's some challenges, but there's definitely some challenges right now for a lot, of, a lot of employers. What do do you see as the biggest challenge right now to the industry as a whole? We could use the UK as a good example. I would say.
Speaker 2:The biggest challenge, I think, is energy prices. I think that is really key to many businesses, especially in manufacturing, because it's a huge cost basis, isn't it? So it's trying to compensate for doing the right things in terms of making this shift to a fossil fuel-reliant energy base, to a sustainable energy base that is affordable to businesses so they can keep competing on the for many business. For us, it's less so. We're not competing on a global level. We're very much in the domestic market, but many businesses really need to be able to compete on a global level, isn't it? And energy, I think, is the biggest challenge. Yeah, and and this is really where I think, a strategic dialogue needs to take place, or much more take place, between government and and industry as well, to make sure the right balance is struck here to allow industry to continue to grow.
Speaker 2:Everything else, as you said already you said it perfectly every challenge is an opportunity, isn't it? This confidence as well, especially here in the northeast, there's fantastic worth at work ethic, that there people are really resourceful, and it's having this confidence that that we can come up with the solutions that that we need to come up as well to to remain competitive and talent is coming through. I don't think there is lack of talent. There's always this lack of skill and lack of talent. There is a lot of keen young people that are just waiting for the opportunity to shine, so we just need to make sure they continue have to have the stage to shine and then carry us forward as well yeah, I agree.
Speaker 1:I agree with that. I think there's. I think there's only a gap in talent because there's a gap in training, because there's people who are there. There's people who are you only got to go on any social media job board, whatever you want. There's people who want work. There's people who want work and if the right training is given and this is probably where companies need to understand a slightly longer term view that those people who are readily trained and can hit the ground running which a term I hear every single day people say can I have someone to hit the ground running? Not as many of those exist as they used to, unfortunately, but there's people there and if you have the time, and time is a cost, unfortunately, and that's another challenge as a cost, unfortunately, and that's another challenge.
Speaker 1:But for me, manufacturing engineering is going to radically change and I think there will be a certain reduction in a certain type of skill set. I think, as automation comes in, I think there'll be reduction there, but there'll be an increase there and I think it's the increase there in that type of skill set. We need to train because there's people in you mentioned exactly that the Northeast, it's resourcefulful, work hard. This region once completely lost its, its industry. They should build and then, you know, got it back. You know nissan came and it. It proves how hard people up here work, and so I completely agree with you. I think you know we are in a great region to um to really lead from the front, if we're given the opportunity, funding investments, everything else it needs, which which apprenticeships, which it does definitely yeah, and it's the young people, but it's also, I think, a challenge is also to make sure that the, the existing workforce, is brought along on this journey.
Speaker 2:Isn't it because you're absolutely right that the the way we work is changing? Isn't it there? Because you're absolutely right, the way we work is changing, isn't it? There's automation, but then there's all this AI that's coming in now as well, so everything is much more networked and it is a different skill set, and 20 years ago, operators, you know they could help themselves and they'll operate valves and something is stuck and you know they get some tools out and it's fixed, and now it's all networked. You need a completely different skill set and we need to bring our existing workforce along on this journey as well, because they have very deep process understanding already as well. So it's really important to build on this and then carry them forward as well and make sure they are fit for the next uh, for the next evolution of manufacturing as well.
Speaker 1:Really yeah, but I absolutely. It's an opportunity. Where do you um, what the next sort of 12 to 18 months looking like for for ego? What's what's on the horizon? I imagine keep moving forward as as per. What's what's the opportunities there?
Speaker 2:Yeah, the government has big house building targets, isn't it? And then we really want to serve this market and be part of this journey and make sure it's done in a sustainable way as well. That really is the big mission for us. This is where we come into the market. This is where we want to continue being in the market. Lots of people probably don't realize that our products are in every second house in the UK. So we are there. We want to continue to be there. We really want to continue to lead with innovation with our product. So we're really proud to be market leaders when it comes to quality, service quality as well. So it's product quality, service quality and really continue to be strong and continue to improve in this aspect. So we are a reliable partner to our customers and then the best partner for our customers that they can work with as well. That's really important for us.
Speaker 1:Yeah, thank you, and it's been great because I think you know it's been fascinating because Egger is one of those businesses where people just want to lift the bonnet and go oh God, how are they doing what they're doing? You know they've got an excellent reputation, you know 1400, you know apprentices applying speaks for itself in terms of how important that business is to that area and how well known they are and how reputable they are. And I think this has been a really fascinating lift of that bonnet and I hoped and knew you would speak so highly of such a business because actually it is fascinating and it's rare you get a business which is so well connected from a family level to its people and somewhere people want to stay for a long time and it's so multifaceted. That regard the sustainability piece, the leadership piece, the respect piece which actually I think really came through today how that respecting your staff and respecting the people in it is so important.
Speaker 1:And I think anyone listening who is part of a small business, you know can, still can, can act on that today. I think sometimes we think we can't do this because they're a big business. You obviously you can. You know this is stuff that you can change today. That's just how you speak to people, how you deal with people and start to get a culture. So, thank you, alfie. This has been, um it, great, fascinating, and, yeah, really appreciate your time.
Speaker 2:Thank you, Mark. It was likewise a pleasure for me to speak to you. Thank you very much.
Speaker 1:Thank you so much for listening or watching this episode of the Manufacturing Leaders Podcast. Please just like or subscribe. It really helps grow the show and obviously improve the industry. If you want any more information about Theo James, as I mentioned midway through the episode no-transcript passionate about so please, if that is you and you are passionate about that dream role or passionate about your people, please get in touch with me or the team. I would absolutely love to talk a bit more detail. Thank you very much. Speak soon.