Coventry, England, April 20, 2006--China, India, low cost, outsource--these seem to have become the mantra of some manufacturers as they aim to survive in the global market, according to the Birmingham Post & Mail.
Not so for Amtico.
In a turnaround from the normal UK manufacturing survival plan, Amtico is heading down the value chain.
Instead of heading for the higher value and niche markets to compete with cheaper Far Eastern imports, the maker of plastic floorings is now widening its range and increasing production.
That's not to say Amtico, which spun off from chemicals and textiles company Cour-taulds in 1995, is heading for a bargain basement strategy either.
At present Amtico floorings are used on the floors of American nuclear submarines, hospitals as well as high street retailers like Marks & Spencer and Debenhams.
But it is also aiming for mass appeal with production firmly at its two Midland sites--Coventry and Solihull.
Jonathan Duck, chief executive of Amtico, said: "A lot has changed in the last two and a half years.
"In 2001 to 2003, our sales had plateaued, but the market was growing.
"There was lots of Chinese competition and we were heading up towards the top of the pyramid, going up the value chain.
"The danger of becoming more and more niche is the market becomes smaller and smaller."
Duck highlighted the example of motorcycle maker Norton as a salutary lesson. "They went upscale to deal with foreign competition, but this meant they were losing market share.
"But you can only do that for so many years until you run out of customers. At the top of the pyramid there are less and less customers."
So, ultimately you run the risk of selling only one, very expensive motorbike, I said.
"Exactly," said Duck. "We also want to make sure we are part of the big store improvement roll outs for example.
"But we wanted to sell more and grow our market share. Now we compete hard with our competitors, rather than just becoming more specialist and high value."
Amtico now competes on cost and innovation, with a series of new products launched every year.
In a Foleshill facility posters compared Amtico's products with those of its competitors.
Sales have doubled from pounds 40 million in 1995 to pounds 86 million, while profits have risen from pounds 4 - 10 million.
More than 300 different types of plastic flooring are produced, ranging from different wooden effects to ones which simulate glass and metal effects, bright colours and textures.
The company employs 460 people in the UK at two sites in the Midlands--400 in Coventry and 60 in Solihull, while it opened a factory in the US in 1999.
Production levels now run at about 300 yards per hour, although this can be increased to cope with demand, Mr Duck said. It currently has about 30 per cent of the UK market, but is aiming for more.
Duck said: "There is big trend for people to use smooth flooring. It is easier to clean and people think it is more hygienic than carpet or wood floorings.
"It is also tougher, it does not stain or indent very easily, and it is on the ground longer."
Duck said the increased popularity of plastic floorings, with a variety of different prints and designs, was also as a result of people 'trading up' from laminated or carpeted floorings.
Innovation remains important to the firm, which has a 50-strong research and development team.
This has led to new floorings for the health care market - which produce fewer emissions--and a new flooring product for car showrooms.
The flooring, called Amtico Auto, is resistant to tire marks and stains.
