But this advice doesn’t flummox him. Hodgson’s vision for his print group is long term and expansive. Established in 1980 as a reprographics company in a small room in Stalybridge, Cheshire, Kelvin Graphics has since been growing rapidly. In the past four years, the group has bought printing companies Direct Print in Manchester, Cheadle-based Direct Imaging (formerly Grandville Reprographics), and Marshall Hayward based in Sharston, Manchester. In February, Kelvin acquired The Linden Print Group, a Cheshire-based company with a £1.2m turnover and nine staff. They now form the Kelvin Print Group.
In November last year, Kelvin completed its move from five production sites into one 2,900m2 site in Hyde, Manchester. Hodgson recalls: “When we looked at the site, everyone thought we were out of our minds because it was in such a state. It looked like a derelict Second World War aircraft hanger.” Around £280,000 was spent on the factory last year and £3.5m in total. “It was all in my head how it would be. We’re very proud of it,” he adds.
But, Hodgson’s ambition doesn’t stop here. With his company’s 2007 turnover targeting a minimum of £8m, his vision for the company is very clear. “Kelvin will go on for many, many years. I want to see its turnover reach £15m within the next two years. But I can’t tell you all my secrets of how to double that – I’ll leave you guessing,” he teases.
Huge changes
Hodgson, who was appointed as managing director in April 1982, celebrated his 25th year in the role this month. “It’s really neat, I’m very proud,” he says. When he joined the company, everything at the reprographics site was produced by hand. It wasn’t until 1996 that Kelvin diversified and installed its first printing press. Now, the firm has embraced enormous changes in line with the developments of digital technology.
The new site houses 90 staff and offers a one-stop shop for design, repro, print, marketing and web production, all under one roof. Hodgson explains: “If you are in print, you have to have the latest technology and IT, and quick production presses.” The group has gone for three Mitsubishi presses – a 3000 and two 1000s. Hodgson says that they “came up to the standard which I was looking for. The technology now is amazing.”
The group is also involved with training local university students in print. “We want to work alongside universities. Students are good with the theory but not practical.” Hodgson will open Kelvin for one day per month so that students can get to grips with the machinery. He argues: “I think in the printing industry, training has been put aside. You have to bring fresh blood in. You definitely need the old boy blood and the young blood.” Both Hodgson’s son and daughter work at the company, and he also believes that the printing industry should have more women in it. “I’d love to promote women in print. They have a better eye for detail.”
Ahead of the rest
Hodgson adds that in this industry, constantly keeping ahead of the latest technology will keep Kelvin in front of its competitors. He says that the main problems within the industry that he faces are “parasites”. He gives an example: “Employment agencies are constantly on the phone to your staff trying to entice them away – this is a continual thorn in my side.” He adds that the problem of customers going bust is not as bad as it was in the 1990s, “but we have taken out insurance cover, to help guard against this, although it is not the ideal solution” .He adds that another issue is phoenix companies, “who leave bad debts and a bad taste with all suppliers and then set up the next day as a new company, debt free”.
For the future, he says that he will hand on Kelvin “to those within Kelvin who have shown that they can run it without me”. The future of print, he believes, will become more and more automated. “Lots of trades are dying and being replaced with technology. It is very sad. Technology will take the skill out of it somewhat, but I do welcome it with open arms. You have to invest in new technology.”
Hodgson’s plans are for continued growth and to become the premier printing company in the north-west. He says: “You don’t go anywhere in this game unless you surround yourself with a professional, quality team. The printing industry is my blood – I’ve been in it since I was 15 years old.” He adds that merger and acquisition is part of the way forward for the industry, but “the rest is organic growth”. And whatever his directors say to him, he does envisage taking over another company in 2007.
KELVIN GRAPHICS FACTFILE
Location Hyde, Manchester
Managing director Dave Hodgson
Turnover £8m
Target £15m turnover by 2009
Staff 90
Established 1980
Sectors direct clients, design and advertising agencies, print brokering companies and trade print
Kit A Mitsubishi Diamond 3000 press, two Diamond 1000s, HP Indigo 5000 digital press
Services include design team, distribution, and full in-house finishing
Cheshire firm eyes 15m turnover as it extends ambitions beyond acquisitions
With a hearty chuckle, Kelvin Graphics managing director Dave Hodgson says that his fellow directors have told him to stop buying companies. Theyve asked me to come up for air, at least for the year, he says. Hodgson points out that if he was to make an acquisition this year, it would be the commercial printers fifth in less than five years.
