board that can deliver this.”
Like many engineering firms, HRS
is at the sharp end of the skills
crisis and Steven understands the
importance of investing in people.
“With the industry-wide skills
shortage, it can be a challenge
to recruit good staff, which is
why we strive to hold onto the
ones we have,” he explains. “To
encourage staff retention, we offer
competitive salaries, profit shares
and bonuses; provide career
development opportunities; and try
to be as flexible as possible. We
also offer apprenticeships, to keep
the next generation of talent coming
through.”
Think global
The importance of good people
extends to HRS’ international
operations. Although it relies on
agents in some territories, the
company has its own offices in
Australia, as well as Spain, Malaysia,
New Zealand, the US, Mexico,
Russia and India.
“The vision was always to build an
international heat exchanger brand,”
says Steven. “An international
presence helps you to be taken
shear-sensitive liquids or soft fruits,
to those with hygienic handling
capabilities for the most stringent
food or pharmaceutical demands.”
Keep the cash
flowing
While a focus on people and
products is essential to success,
according to Steven the biggest
restriction to the growth is access
to finance. Developing good credit
terms with your supplier is therefore
crucial.
“Particularly in the early days, late
payments and cash flow were a
challenge,” reveals Steven. “We
were importing equipment and
had short credit terms from our
suppliers, yet our customers were
requesting long payment terms. This
was a problem for us, so we worked
hard on building a good relationship
with our suppliers, proving ourselves
as reliable and trustworthy.
Over time, they extended our
credit terms from 30 to 60 days,
eventually increasing it to 90 days.
The importance of this cannot be
underestimated; you can have great
products and a great team, but if
you haven’t got cash, you’re in a
dangerous position.”
Plan for the future
Finally, no business ever became
successful by standing still. Despite
HRS’ significant recent growth,
Steven is still driving the company
forward with plans for a testing
facility in Spain, new process
solutions, innovative prototypes,
and an expanded core range of heat
exchanger products.
HRS is also planning to offer a
subscription to its software system,
which will enable engineers to
model different applications. The
company hopes it will generate
increased sales, as well as allowing
them to spot trends by tracking
what people are modelling.
And HRS’ international plans
aren’t finished yet, either; Steven is
focusing on developing business
further in Australia and New
Zealand, as well as in Russia and
Latin America. But as the company
has a five-year plan to increase
sales to £60m, could he be tempted
to branch out even further? “We’ve
got no immediate plans to open
any more international offices,” he
says. “However, there are still some
territories which appeal to me, such
as China, Africa, and the Middle
East. So, never say never!”
seriously by big customers; it builds
confidence and trust. However, I
decided early on that if HRS was to
become globally successful, it was
essential to find local talent in each
territory who could communicate
in the same language, and with the
same cultural references, as our
customers.”
The international gamble certainly
paid off, as a combination of strong
local teams and proven products is
helping HRS to enjoy an impressive
41% international sales growth
(annual average based over two
years).
Focus on innovation
Although heat exchangers remained
a focus, as the business began
to grow, Steven realised that his
customers were looking for more
than just pieces of kit; they were
seeking integrated systems, which
could provide entire solutions. To
fulfil this growing demand, HRS
acquired its own manufacturing site,
and soon expanded with a bigger
facility in India. These are supported
by two workshops in Spain,
where the company also houses
its R&D and design departments.
HRS’ range now includes entire
wraparound solutions such as
evaporators and concentrators, as
well as an ever-expanding portfolio
of heat exchangers.
“Thanks to our increased
manufacturing capabilities, we now
offer a wide range of patented and
innovative designs, such as our
R Series of scraped surface heat
exchangers, specifically designed
for viscous and challenging
products with extremely high fouling
properties,” Steven adds. “Our
product development is customerled,
so our range comprises
everything from heat exchangers
with gentle handling capabilities for
"Look closely at any
successful business and
you’ll find a team of
talented and committed
individuals; HRS Heat
Exchangers is no
exception”
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