Mersey maker Warwick thrives amid adversity

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Published: September 3, 2019

By his own admission Greg Johnson felt “isolated and overwhelmed” when he took the helm of his family’s manufacturing business in late 2021.

Greg’s father, Brian Johnson, had been running Bootle-based window and door manufacturer Warwick North West since 2008. But a serious medical diagnosis meant he had to step down with immediate effect.

That unexpected turn of events catapulted Greg into the hot seat. He was not unfamiliar with the business. Greg had joined the family firm 15 years before, starting on the shop floor, which gave him a solid foundation in all aspects of the business. His dad insisted “there would be no special treatment”.

He went from administration to production, then into sales and admin. It was, said Greg, a “progressive and immersive experience”. But being asked to actually run the firm was a task of an altogether different magnitude. All eyes were on him. How would he respond?

“In December 2021 we received the news that so many families dread – my dad was diagnosed with cancer,” said Greg. “It meant I was immediately to become managing director of Warwick. It was, without doubt, the biggest challenge of my life.

“Sure, my fifteen years learning the business inside had been a fantastic learning experience, but no amount of technical knowledge can prepare you for the huge burden of responsibility that suddenly lands on your shoulders.”

Around the same time Russian President Vladimir Putin was sitting in the Kremlin in Moscow finalising plans to invade Ukraine, which he duly did on February 24, 2022. Decisions being taken 2,000 miles away were set make Greg’s job even harder.

In the months following the invasion the impact on the global energy market was dramatic, with prices rocketing this fed through to the cost of raw materials. Not only did Warwick’s energy bills soar, the cost of raw materials such as glass rose by 40 to 50%.

What happened next at Warwick can be accurately described as remarkable. Greg rose admirably to the challenge of running the firm and, despite those early feelings of isolation, he quickly realised he wasn’t alone.

Greg explained: “The knock-on effects of the invasion of Ukraine came right to our door. The cost of everything went up  such as glass and UPVC. But think of all the elements that go into windows and doors – locks and door hinges. Everything was suddenly costing more.

“What we did have going for us at Warwick was a fantastic team of people at every level of the business. The value of that experience, that expertise and institutional knowledge cannot be calculated.

“In those first few months we put together a new management team and together we drew up a strategy that not only helped us to survive but thrive. We didn’t want to just batten down the hatches. Our aim was to grow this business.”

Employing what he described as “creative thinking and bold managerial decisions” Greg oversaw a programme of new investment. This included a £1m upgrade of its manufacturing facilities and a new head of production.

“We were resilient, but we were also ambitious and forward-thinking,” added Greg. “We implemented changes that allowed us to keep our selling prices competitive without eroding our margins.”

It was an approach that paid dividends. Just prior to the COVID pandemic in 2019 Warwick was achieving annual revenues of around £5m. By 2022 Greg and his team had pushed that to just shy of £12m.

In autumn that year, those achievements were recognised when Greg was named Young Entrepreneur of the Year at the Downtown in Business Livercool Awards in Liverpool, and the firm picked up Employer of the Year at the Merseyside Independent Business Awards.

In contrast to those early days when Greg felt overwhelmed by the challenge, he was now emboldened and confident about Warwick’s prospects for the immediate and medium-term future.

Warwick – the ‘go to’ firm

Warwick North West was launched by Greg’s uncle, Gavin Johnson, in 1998. Today, from its factory close to the River Mersey, it produces Innolux, a premium range of PVCu windows and doors.

These are supplied to installers, builders and developers across the North West and Yorkshire. It currently employs around 115 people, a number that is set to grow further in 2024 with Greg set to invest a further £500,000 in new machinery.

This will improve efficiency and increase capacity by up to 20%. With housing associations and local authorities looking to accelerate efforts to address the housing crisis, Greg is targeting the social housing sector as a major area of growth in the coming year.

“We have been analysing industry data,” he said. “Figures from construction insight specialist Glenigans suggest an improving economy in 2024 which fills me with optimism for this year and beyond.

“Despite sales in the window manufacturing industry falling by 23% in 2023, Glenigans believes there will be a modest growth of 4% in private housebuilding in 2024 and 11% in 2025.

“And a figure we have taken particular note of is the forecast that the social housing sector will grow by 7% in 2024. We are increasingly becoming the ‘go-to’ window firm for social housing builders.

“There is a chronic shortage of affordable homes in Liverpool city region and a number of housing associations are looking to address this.

“We are providing them and their contractors with quality, affordable, windows and doors. It is important that spend stays in the city region.”

Leaving no one behind

Given Greg’s own tussles with adversity it is, perhaps, no surprise that he is keen to offer opportunities to those facing their own personal challenges.

“Businesses cannot exist in silos, isolated from the very communities in which they operate,” said Greg. “Warwick has been in existence for 25 years. We are part of the fabric of Liverpool city region.

“Our workforce is drawn from the local communities of Merseyside. People are the lifeblood of any business and, like most manufacturers, we need to ensure we keep bringing new people into our operation. Recruitment shortages are a drag on growth.”

Warwick has formed partnerships with two workforce development organisations – Nobody Left Behind and Inside Connections.

Nobody Left Behind uses sport as a means to foster positive mindsets among young unemployed people. It offers industry-specific skills training in a programme that aims to equip them with the necessary tools and knowledge to secure employment.

Inside Connections is a community interest company committed to supporting prison leavers and young people at risk of offending.

Greg added: “Both of these organisations tailor their programme to the needs of the manufacturing sector. Using these schemes to bring new people into Warwick is not only the right thing to do, it makes perfect business sense.

“By providing employment opportunities and allowing these young people to apply their newly acquired skills, we’re not only investing in our own growth, but also fostering a sense of purpose and pride among our employees.”

And Warwick’s philosophy of reaching out doesn’t stop there. It has established links with other local charities. They include Ykids based in Bootle that works to improve the lives of young children and their families.

It also provides social value in other ways. Greg is a business ambassador for the charitable arm of Alder Hey Children’s Hospital, Alder Hey Children’s Charity.

This funds research studies across clinical areas including cancer, asthma and orthopaedic surgery. It also raises money to pay for equipment, services and projects across the whole of the hospital and the Alder Hey in the Park campus.

Makers make a difference

It is a myth that Britain doesn’t make things any more. According to manufacturers’ body, Make UK, the UK is ranked eighth in the world for volume of output. Every year the sector contributes £224bn in GVA value and employs 2.6m people.

It accounts for 49% of all UK exports, contributes 41% of all research and development and accounts for 16% of all UK business investment.

And while we may think of large factories such as Jaguar Land Rover in Halewood it is the small and medium enterprises (SMEs) that make up more than 99% of the UK business population.

It is companies such as Warwick North West where much of the UK’s growth is generated. And it is not just a maker, it is an innovator. Like many businesses, Warwick is increasingly focused on the push towards net zero carbon.

Greg is investing in more energy efficient machinery and vehicles and its own products are also contributing to a lower carbon world.

“We specialise in producing an innovative window system called Modus,” he explained. “Modus offers lower Uvalues. The Uvalue is a critical measure of thermal efficiency. It measures how heat from hot air will pass through the glass.

“The lower the Uvalue the better the insulation. Used in conjunction with other measures such as air source heat pumps our windows and doors can make a real difference to energy efficiency and fuel bills.”

Greg passionately believes our education system currently does not do enough to encourage entrepreneurship and innovation. He said: “Co-operation between schools and industry is a lot better than it used to be – but there is still room for improvement.

“I believe our schools need to encourage a culture of creativity and risk-taking. They are the essence of entrepreneurship.

“At Warwick we want to grow our business, offer opportunities to people and contribute to the local economy and play our part in combating climate change. But we can’t do those things in isolation.

“We recognise that we are part of a wider ecosystem. By working with the community, with other businesses, with charities and with the public sector we can demonstrate that business can be a genuine force for good.”

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