Modtec reaches out for design award

Modtec’s head of sales and marketing Ian Cooper says in the 30 years that the company operated solely as a contract manufacturer its “destiny was in the hands of others.”

“Products have a natural lifecycle from birth to replacement, but as the manufacturer you don’t have control of that. It is hard to drive a business forward when you have that uncertainty.”

Designing the Integ range of modular arms was intended to achieve greater influence over the design, manufacture and sales process, and sprang from Modtec founder Bruce Davies’ foresight in recognising flatscreen monitors would create a demand for new design and mounting solutions.

Cooper, who joined Modtec two years ago, says early market research showed few competitors in the same space and significant potential markets offshore as new monitors were rolled out.

After “exhaustive concept designs” and research the product was released in 2002, but Cooper says it required significant investment – a figure that at the time represented between one to two years’ turnover.

“The investment probably wasn’t recouped until year three or four of the product’s release.”

Right from release the product was sold into international markets but Cooper says it has taken five years to establish a real grounding.

Davies says initially building overseas relationships was new to Modtec.

Now the Integ range is in New Zealand, Australia, Asia Pacific, the United States and the United Kingdom, but with the strongest growth coming from Australia and the Asia Pacific region.

For the 08/09 financial year, Cooper says Modtec achieved 87 percent growth. In 07/08 the company had “triple figure” growth in sales revenue.

All this comes at a time when Modtec’s traditional focus, on contract manufacturing to the commercial furniture market and to suppliers to residential homes, would have left the company highly vulnerable.

“There’s no question that in the most recent downturn those two market segments really felt it but we have been in a position to offset the downturn in some markets with upturns in other markets.”

Over the last 12 months, Cooper says the Integ range has accounted for more than half of Modtec’s business.

Driving steady uptake of the monitor arms the Integ range’s “Lego approach”, according to Cooper.

Modtec offers a range of Integ componentry so clients can purchase customised monitor arms in contrast to the fixed models offered by competitors.

“We have a clear advantage over our competitors based on rapid customisation of our monitor arms using a Lego style philosophy,” says Davies.

“The Lego model means the original template can, with little physical change, evolve as technology evolves. The key component is a unique slot mechanism and alloy extrusion, which can hold up to four arms of various lengths and is easily height-adjusted to suit the ergonomic needs and requirements of each operator.”

Now, Cooper says, Modtec is investing heavily in R&D and design as it works to develop complementary products for the Integ range and stay ahead of competitors.

Cooper’s advice to other companies looking to establish business in international markets is to build the business at home first.

“There is a strong indication you should be doing it locally before you do it overseas. If it succeeds you have a model to work from, and if it doesn’t you’re still close to home. Those small niches too, although they won’t transform the company, they can provide a steady base.”

Companies looking to establish relationships should also have plenty of people prepared to jump on a plane and talk to people face-to-face.”