Decline, Partial Recovery and Return To Private Ownership
Though the company won a Queen's Award for Export in 1971, the 1970s saw BUSM's advantage in complex production machinery eroded, as off the shelf hydraulics, pneumatics and electronics replaced many mechanical components, reducing the cost of entry to new competitors. The already strong German and US competition and the growing Italian shoe industry was joined by competition from Korea and Taiwan both using cheaper labour and all started to source local machinery. BUSM itself initiated design simplification offering Injection moulding and cementing as an alternative to stitching.
In 1983 the Department of Trade and Industry sponsored a transformation of BUSM's manufacturing processes with what was one of Europe's most advanced Flexible manufacturing systems, four KTM numeric control machining centres were installed for discrete component manufacturing. BUSM’s unique application of FMS to highly varied, low volume work remained in use for 15 years.
The company also developed computer control machinery claiming world leadership of microprocessor controlled shoe machinery and 75% of the world market by the end of the 80s.
By 1986 Emhart's business strategy had changed to avoid highly cyclical industries like footwear. After 18 months negotiation, “Britain’s largest ever Management buyout” led by John Foster purchased the shoe machinery business excluding materials at a cost of £80M.
Chris Price, a former BUSM graduate apprentice who became Research and Development Manager and eventually rose to the board rejoined the MBO as Technical Director.
Finance Director Richard Bates said “We have broken free of the shackles of a multi-product group run on financial criteria, so we can now run a single industry business”.
Under Emhart's ownership, the old Union Works was demolished and the site, the sports club and the Mowmacre Hill sports ground were sold off.
"BU's renewed vigour" became apparent when in 1989, it was one of only three UK companies to win both a Queen's Award for Technology and a Queen's Award for Exports. Exports accounted for 60% of the business.
In 1990 BUSM bought the shoe materials company Texon from Emhart’s owners Black & Decker for around $125M, doubling turnover to £200m and increasing the workforce to around 3000.
USM-Texon as the group became known, transferred workers to its new pension scheme. USM-Texon was in a unique position, the only one in the world manufacturing both shoe materials and machinery. Now focusing on materials, it opened a factory in Foshan South China in 1993 and Chennai, India in 1994 and planned to float on the London Stock Exchange the following year.
Chris Price's achievements were recognised as he became the 1995 president of the Institution of Mechanical Engineers, the youngest for 100 years.
Read more about this topic: British United Shoe Machinery
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