Simon Midwood
Taking over a business that was started by one of your parents has its challenges, not least setting out ambitious plans for its growth, while maintaining the values and standards that they set out all those years ago.
This was the case for Simon Midwood, managing director of TIMCO, which his father, Tim, founded in 1972. Back then the Cheshire-based business was run from a small unit and sold products comprising a range of nylon lock nuts and self-tapping screws from the Far East. Sadly, in 1996 Tim died. Six years later his son stepped into the driving seat and turned into a leading wholesale supplier in the building and construction industry.
In the last two decades its turnover has grown from a £5.6 million in 2002 to £49.7 million in 2020, with a product range of over 7,000 items, from screws and power tools accessories to ironmongery and Personal Protective Equipment (PPE).
Midwood says: “Joining a family company is never easy, especially when you are stepping into the shoes of your father. He created a great reputation for quality and service and it has been a challenge to ensure those high standards are kept as the company grows. I also learned very quickly that you can’t run the company on your own and you need to surround yourself with a good team with the same standards and goals.”
Like many businesses in the sector, TIMCO was impacted by tough trading conditions created by Brexit and the pandemic. However, Midwood refused to batten down the hatches and instead invested in the business, fueling growth and preparing for the next phase of development. This included a £1.1 million investment in an extra 40,000 square feet of warehousing space, with a new purpose-built warehouse, taking the total space to 140,000 square feet.
Six acres of land were also secured to double storage capacity, increase parking and grow the offices in future years. The entire TIMCO product range was re-branded, with online sales now accounting for over 50% of all sales, up from 20% of sales a year ago.
The move has paid off, with a 14% increase in turnover to £49.7 million in 2020. Midwood has also directed capital and resources towards our people, increasing the total workforce by 40% in the last year, and to help drive customer acquisition and retention, seven new regional business consultants were recruited, bringing the total to 20.
The business sources its products from the Far East rather than the EU, and so wasn’t as badly affected by Brexit as other companies, however shipping to Ireland with the additional customs checks has not been without its challenges. “Even so, our sales there are up 8% year on year,” says Midwood. “There have been supply issues but we keep a large amount of stock, typically five to seven months’ worth, which have acted as a buffer. We currently have £34 million in orders with the Far East.”
Throughout his pursuit of an ambitious growth strategy Midwood has never forgotten his father’s founding business values. His business model reflects this with high levels of support for customer businesses that enable them to compete with national operators, which includes the ‘TIMCO hug’, an umbrella of support packages which includes the provision of expert advice in products, sales, marketing, logistics, merchandising and technical support.
His team also observes the company’s ‘Dear Mum’ principle. To achieve its goal of maintaining a respectful working environment and award-winning service staff are asked to treat customers, suppliers, and colleagues as if they were their mother or their closest loved one.
“Whether you’re resolving a customer problem, packing an order, or creating a piece of written communication, our ethos is simply to imagine that you are doing it for your mum,” says Midwood.
TIMCO is on track to achieve a £60 million turnover for 2021, and Midwood is upbeat about the company’s continued expansion in 2022. He says: “We’ll be launching new products, including hand tools and new workwear in Q1, with a thousand new product lines planned for 2022, along with more partnerships. We have enough capacity and space to enable us to double in size, in what will be a landmark 50 years in business.”
