Burnley-based James Hargreaves (Plumbers Merchants) Ltd is to pump £3m into six key areas of the business to safeguard its long-term future.
Among the changes are a major re-branding exercise, splitting the company into three main areas: James Hargreaves Bathrooms, James Hargreaves Plumbing, and James Hargreaves Renewables.
The company is also spending money on a new trade counter in South Sheffield, and plans to open a new bathroom showroom and trade counter in Stockton-On-Tees later this year.
The company is also investing in a new warehouse and administration facility at its main site in Burnley, and there are plans to install a new state-of-the-art computer and telephone system.
Managing director Gordon Rothwell is confident the strategy will enable the company to emerge in a position of greater strength. “With the economy in tatters we have developed a strategy to see us through the worst trading conditions in recent memory,” he told buildersmerchantsjournal.net.
“Our competitors are all in a state of meltdown, rushing to decrease stocks, lay off staff and generally reduce costs no matter what, with little thought for the future.
“We have decided that the best form of defence is attack. Due to the financial strength of the business, we are able to re-invest approximately £3m of the retained company profits in six key areas of the business. The next 12 months will, without a doubt, see a short-term deterioration in the profitability of the business. However, the investments we are making now will give us a payback over the next 10 to 20 years and also position us to be quickest out of the blocks come the end of the recession.”