For Cheltenham-based precision manufacturing specialist Future Advanced Manufacture Ltd (www.futuream.com), 2008 proved a turning point.

Initially, the company was mainly involved in R&D projects, with a specific focus on creating and developing aerodynamic solutions and wind tunnel models for a range of aerospace customers.

This specialist type of work, which accounted for some 75% of Future AM’s turnover, often provided high margins but was unpredictable; and the length
of time required to complete projects caused cash-flow issues.

Managing director Craig Peterson said: “Back in 2008, 25% of our turnover derived from production and repeat manufacture, and to secure the future of the company we realised it was essential to re-balance our order book in favour of securing more high-volume precision production work.”

The first step in the company’s change of direction was through a management buyout led by Mr Peterson, but then the economic downturn struck. “While this created problems and meant that we were in ‘fire fighting’ mode for a few months, it did reinforce our belief that a reliance on R&D projects was an unsustainable business strategy.”

The economic recovery, which Future AM first experienced in 2010, allowed the company to put its plans into operation — namely, a new manufacturing infrastructure that was geared up to handle more production work. The machinery to handle this additional workload came in the form of Doosan Puma lathes supplied by Mills CNC Ltd, Leamington Spa (www.millscnc.co.uk).

In 2010, Future AM bought a Puma 400LB lathe, following this with a Puma 2600M in 2011 and a Puma 400B in 2012. All three machines are being used to manufacture small-batch high-precision complex parts for the aerospace, oil and gas, and medical sectors.

The parts are made from a diverse range of materials including titanium, beryllium, molybdenum and high-tensile nickel.

In conclusion, Mr Peterson said: “We have successfully re-balanced our business so that 70% of our turnover now drives from production work and 30% from R&D.”