Promedics Orthopaedic

"SDI was tremendous in helping us to gain a profile. We now have a thriving export business thanks to the support of SE/SDI and are gaining a reputation in Europe for our quality and responsiveness.” – David  Baxendale, Managing Director at Promedics Orthopaedic Ltd

The company

Promedics are a leading European Orthopaedic manufacturer and distributor. The company manufactures soft orthopaedic goods, including wrist, elbow, ankle braces and supports. The company was formed in April 2008 following a management buyout led by former Finance Director, David Baxendale, now the current Managing Director.

Now wholly-based in Scotland the company has focused on creating a successful export market and new product development, with 150 staff and a turnover around £8 million.

The challenge

David Baxendale, former Finance Director, Promedics Orthopaedic Ltd, along with Commercial and Production Director colleagues, undertook a management buyout of Lancashire family-owned business Promedics, completing the deal in April 2008.

David and his colleagues undertook two radical step changes for the company. First, to combine the former separate functions of sales and admin undertaken in the Blackburn HQ with the manufacturing side undertaken in the Port Glasgow. The company, successfully integrated all functions into the upgraded Port Glasgow HQ.

Second, to focus on exporting. This would leverage the relative weakness of sterling to make the products more attractive. Says David, now Managing Director: “We wanted exports to be a central feature, but in order to make this happen we needed some help.”

The solution

Malcolm Craig, Account Manager, Scottish Enterprise (SE), worked with the company to realise its ambitions: “The company was well placed to capitalise on offering its own UK based production.

"This was attractive to the European medical textiles market given that the market for orthotic goods tended to be swamped by imports from Asia where issues of quality and flexibility have to be considered alongside cost.”

How SDI helped

Malcolm sought the expertise of his SE colleagues in Scottish Development International (SDI), SE’s international trade and investment service, so that together, with David and his colleagues, they could come up with a plan to develop an export market.

Says David, “What became obvious was our complete lack of profile overseas. SDI was tremendous in helping us to gain a profile, which it did in a number of ways.

“One of the biggest annual trade shows for our market is Medica which takes place in Dusseldorf. Scottish Enterprise helped fund the construction of a superb exhibition stand, and have part-funded our presence at the shows on two occasions.

"We've had significant success at Medica – through networking and partnership, it’s helped to generate a solid export business for us.”

David and his colleagues were adamant that they wanted a strong UK manufacturing base and put a significant amount of energy into ensuring this, despite imports being easily accessible.

Homing in on European markets

David continues: “We have developed markets in Scandinavia, Germany and Austria. I believe we have an edge on the Asian manufacturers because we can respond flexibly and moreover, rapidly, to changes of need.

"The quality of our products has been clearly very important, but the price is also now more competitive.”

Promedics works in partnership with overseas companies which sell directly into their own health services rather than selling directly.

Promedics, has targeted a gap in the radiology market. David explains: “We found an opportunity to enter the radiotherapy market but it was completely new to us. Scottish Enterprise helped us to access this market by supporting part of the costs of bringing in specialist consultancy in radiology. This has enabled us to gain the requisite skills inhouse as we didn’t have this technical knowledge within the team.”

The specialist has been part of the team for six months and he now offers advice to oncology departments with a view to supplying them with rehabilitation thermoplastic products for hand therapy departments within the NHS.

Promedics is also developing a post operative orthotic knee brace.

Says David: “This is a very exciting and fairly large innovation project, which we intend to launch in Medica next year.

"Scottish Enterprise was remarkably supportive of our ideas and contributed to the development of a prototype through an SE Innovation Grant towards the costs of design and tooling. We expect the knee brace to add significantly to our turnover.”

The impact

New business has been generated in export markets including Scandinavia, Germany, Austria. The new custom made exhibition stand now affords the company a slick looking exhibition presence that adds considerably to the overall professional image of the company.

From an employment perspective the increased market has assisted in creating six additional posts as well as job retention at the Port Glasgow facility. Promedics is now a company of 150 staff with 110 involved directly in manufacturing.

The specialist radiology knowledge within the company has increased opportunities, while the innovative post-operative knee brace once launched looks set to contribute significantly to the bottom line in the next few years.  

“The difference in support levels between Scotland and England is remarkable. Scottish Enterprise has been exceptionally supportive. Like us, they really want manufacturing to work in the UK and they have been a significant contributor to making that happen for us." – David Baxendale, Managing Director, Promedics Orthopaedic Ltd

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