Elgin-based Quality Hydraulic Systems (QHS) Scotland has successfully broken into the global oil and gas market barely 18 months after start up. Employing just short of a dozen, it has a full order book for the next 12 months and a rate of growth suprising even its founders,

QHS Scotland founders Charlie Forsyth and David Morrison have defied current tough trading conditions and the company preparing for growth as orders for the design and manufacture of onshore and offshore subsea equipment soar.

"We wanted to stay in Moray and have proved we don't need to be in Aberdeen to flourish in the oil and gas sector. We manufacture equipment and although we also do repairs and upgrades, the equipment comes to us. We don't need to be on-hand at the quayside. Obviously we want to be reasonably close to an airport and here in Elgin we are close to both Aberdeen and Inverness."

Assisted by business start-up funding from Highlands and Island Enterprise (HIE) the company is now one of the agency's account-managed businesses under HIE's new model of operation.

Forsyth and Morrison launched QHS Scotland in April 2007 after striking up a friendship working together at McDermotts at Ardersier, Inverness. They kept in touch and formed their idea for a business that would combine their industry experience –  design and manufacture of subsea hydraulic control systems.

"I knew there was a huge waiting list for this specialised equipment. But we also knew that if we were going to bid to supply them we had to make sure we had the capability to deliver so that meant bold investment," says Morrison, who praises as 'excellent' the advice from HIE which provided a free business adviser to guide the business through the accountancy requirements it would have to meet and continues to assist the company with its growth plans.

The pair's biggest business challenge was  the right premises. They eventually found the ideal start-up building owned by Johnsons of Elgin. The first order was a small repair job for a large oil service company. Since then QHS has picked up orders from all over the world winning customers in Brazil, India, Egypt, Africa, Australia, Norway, Italy and Spain.

"We've been extremely happy with the response from the market for our services," says Forsyth.

"David and I both understand the front end of the industry and a number of our staff have worked offshore so we are all aware of the practical application of the equipment we produce and the importance of delivering orders on time. Our track record has been such that orders have multiplied since we began in a way we could not have predicted."

To sustain its growth QHS Scotland is now looking to recruit people in areas including design, stainless steel fabrication, mechanical and instrumentation pipe fitting.

Games business for Plexus in the Borders
Plexus the EMS-provider has stated that the opening of a new facility in Romania will not impact on the number of jobs in Scotland. The US-based EMS-provider Plexus with 245 manufacturing staff at Kelso (left) and 23 (right) at its design centre staff in Livingston. And thanks to two contracts worth around £18m a year,  jobs will not be affected by the transition of some business to Romania.

The firm's vice-president, Ginger Jones, said that while it would "transition some business" to Romania, it would not affect jobs in Scotland. He said that two recent contracts meant all its sites could be kept "busy and profitable".

One of the contracts was with UK based Games Warehouse,to produce advanced products at the Kelso facility. Plexus will support Games Warehouse scalability requirements for global production capacity in the both the UK and North America. Its global presence and resources enable Games Warehouse to optimise its operational performance and reduce time to market, allowing Games Warehouse to focus on its core competence, games software development.

"By leveraging our experience in the gaming and kiosk market, and electro-mechanical equipment markets, our team is able to rapidly develop unique solutions for the emerging kiosk market. We have developed a broad service offering for this space and will continue to make further investments in this high growth market," stated Pete Whitley,VP, customer management - industrial commercial.

The Kelso site has recently expanded its manufacturing footprint to support the growing demand for building complex HLA products. In addition, this space will assist in supporting the growth Plexus is seeing in the European market.

Willie MacKinnon, UK MD. "Our people are our key differentiators. The selection of the Plexus Kelso site by Games Warehouse represents a true testament to the site's experience and professionalism in delivering world-class service offerings to our customers as we continue our vision to be the best EMS company in the world in the mid- to low-volume, higher mix segment of the market."

In Glasgow, insurance creates new jobs
Insurance giant esure is creating 500 new jobs in Glasgow, and the firm's expansion is supported by a Regional Selective Assistance grant of £1.4m from the government.

The internet and telephone-based company, will recruit 250 new staff in the next 18 months and another 250 by 2014. The expansion is seen as a massive vote of confidence in the future of the International Financial Services District in the face of the global economic downturn.

The company already employs 610 staff in Scotland and its headquarters in the Equinox building in Cadogan Street is the biggest of its three UK offices.

First Minister Alex Salmond said the expansion had been secured by the "skills, expertise and commitment" of the workforce. "Today's news is a ringing endorsement of one of Scotland's greatest strengths - our human capital," he added. "esure's decision is a strong reminder that, despite the huge challenges that key financial services companies are facing across the world, there are parts of the sector, like pensions and insurance, which are continuing to perform strongly in Scotland."

Council leader Steven Purcell said the expansion was "fantastic" news and underlined Glasgow's status as a major UK centre for the insurance sector.
He added: "esure's decision to substantially expand its presence in Glasgow is testament to the availability and quality of the people it has employed here, since it became one of the first companies to locate in the IFSD back in 2001.

Peter Wood, ensure chairman started the company in 2000 offering a range of insurance services over the internet and it now has more than a million customers.

Salmond has announced plans to create a financial service jobs task force to identify opportunities for future growth in the sector. Something similar for manufacturing industry would also be welcome as redressing imbalance of
the favoured financial sector and its poorer relation, manufacturing .

Source:
Highland & Islands Enterprise 
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