From information publishing to metals fabricating: An unlikely path

Making it in manufacturing (and metals) is tough enough these days.  To do so with experience rooted mainly in an entirely different sector is daunting.

For it to be done by a former Platts co-worker — what are the odds?!

Allow me to proudly introduce Catherine and Troy Barratt, owners of Contracts Engineering Limited (CEL), a sheet metal fabricator based in Sittingbourne, Kent, UK.  And here’s the connection:

About nine years ago, Troy’s wife Catherine was part of the McGraw Hill (now S&P Global) Management Development Program, an 18-month, company-wide rotational program to cultivate recent, top-school MBA graduates. In February 2008, Catherine’s second rotation was with what we called at that time “the Platts steel initiative.”

Working mainly with me in New York, and also visiting frequently London-based Francis Browne, Catherine soaked up everything about the steel industry. Early in her rotation, she traveled to industry conferences, conversing comfortably with steel CEOs. She nurtured high-level relationships and kept dialogues going that enhanced sales and product visibility. In a relatively short time with us, Catherine quickly became a core asset to the steel team, helping us fashion a cohesive sales/marketing strategy.

British-born Catherine, however, seized another opportunity with S&P Cap IQ and she and Indiana-raised Troy — an ex-investment banker and private equity professional — returned to London to raise their family. By 2011, both had left the corporate world.

But they knew they wanted a business of their own. Something that would thrive under Troy’s financial acumen and Catherine’s savvy management and people skills.

“We knew from the start we wanted to be in manufacturing,” she told me just recently.

Gutsy decision, given the plight of manufacturing in the UK.

“We didn’t want the service sector,” Catherine added. “We mapped out a 40-mile radius from our home. We wanted an established business. We wanted one with existing, long-term contract customers,” she explained.

In the fall of 2012, they got one. The deal was done (price undisclosed). Troy and Catherine became the new majority owners and directors of the 23-year old Contracts Engineered Limited, with Troy as Managing Director and Catherine serving as a Director with a focus on business development and marketing.

The ISO 9001:2008-certified fully integrated precision sheet metal and extrusion operation, situated east of London on the way to Canterbury, puts in a 16-hour working day at two dedicated facilities totaling 12,500 sq ft. CEL’s highly skilled employees profile, form, weld and finish — including powder coating — sheet metal, plate and common extrusions. CEL serves a broad mix of customers in industrial, retail and commercial design sectors and customers are based throughout the UK with several located in other parts of Europe.

In three years, revenue has increased to GBP 1.9 million ($2.7 million) from GBP 1.1 million, and CEL now counts 30 employees, up from 20. The business continues to grow. While CEL does not disclose its profits, Catherine noted, “We are very happy with the results and have invested to grow our business.”

She even acknowledged that her time with Platts provided inspiration for the acquisition.

“Exposure to and meeting with industrial businesses started an interest and passion for production,” Catherine said, adding that her Platts steel stint “gave me comfort that we understood our biggest raw material.” She recalled her time at Platts “showed me that being part of a great team and cultivating a great team can produce wonderful results. Troy and I wanted to replicate that for ourselves. We have really focused on training and investment to make CEL a great place to work and be a great supplier to our customers.”

While Troy runs most things, Catherine is very active in the business — understanding steel (and aluminum) procurement, extremely familiar with all the machinery and technology on the shop floor, and beaming with great pride about the family picnics, holiday parties and employee relations initiatives she has launched.

Today, I smile broadly when — this former colleague who knew little about steel and metals nine years ago — matter of factly says, “We buy a lot of mild steel; cold rolled (CR4) and HRPO (S275), as well as stainless steel (300 series) and aluminum (1050 and 5251 grades).”

Her grasp of grades, the terminology, the industry knowledge — it all flows effortlessly now. Impressive for sure.

Still, most impressive is that here is a couple who breathed new life into manufacturing — a sector often written off as dead and buried in both the UK and the US. And they’ve done so with conviction.

Good for them.