MAC Surfacing Ltd, a prominent road surfacing company in Tipton, received a grant to support an upgrade to its plant and machinery. This investment enables MAC Surfacing Ltd to secure more projects, reduce emissions and create a job.
MAC Surfacing Ltd faced a series of challenges due to market changes following COVID-19, coupled with increased machinery costs and finance charges. The company also encountered project limitations with aging equipment that could not meet the standards of HS2.
New equipment
To overcome these obstacles, MAC Surfacing Ltd started to upgrade its fleet, investing in modern equipment to increase reliability and operational efficiency. Through consultations and trials with leading manufacturers, MAC Surfacing selected the Wirtgen W100Fi Planer, which offers a more sustainable, cost-effective alternative to older machinery.
MAC Surfacing contacted Sandwell Business Growth for help and support with their planned investment.
Helping them through the grant process was Helen Peach, a member of our Sandwell Business Growth Team, who guided MAC Surfacing Ltd in completing the application and securing the funding.
Key outcomes of this investment include:
- Enhanced Project Access: The new equipment meets the emissions standards.
- Improved Efficiency: The Wirtgen W100Fi Planer offers better fuel efficiency and lower operating costs, which directly boosts margins.
- Job Creation: The acquisition also led to hiring an additional HGV driver, supporting local employment.
Significant Results and Industry Impact
The positive impact of this upgrade is reflected in both operational metrics and financial performance. With the new machinery in place, MAC Surfacing has seen:
- Increased Machine Utilisation: Utilisation rates for the new machinery rose from 75.60% to 80.66%.
- Improved Profit Margins: Gross margin on projects increased from 14.55% to 17.83%, enhancing overall profitability.
Jake Wherton, Managing Director of MAC Surfacing, said “The grant we received helped us accelerate our ambition to upgrade our plant fleet and, as such, protect the jobs of those we employ. Knowing that government support is available for businesses investing in their future is truly encouraging.”
With new confidence gained from the success of this upgrade, MAC plans to further invest in its fleet as the year closes.
Through these initiatives, MAC Surfacing Ltd shows how strategic use of grants can secure a competitive edge while supporting environmental goals and creating jobs.
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