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Hertz Shelves

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Employee resourcing for factory relocation

Hertfordshire Shelving Systems Ltd is a light-medium engineering company located in Watford, a town on the outskirts of London just within the M25. The company manufactures a range of products, primarily systems for shelving and storage including adjustable and decorative shelving systems. These are produced for two main markets, corporate and retail. For the corporate market, the company supplies a variety of products systems to be used in design and layout of shops, factory stores, offices etc., where functionality is a primary factor. These products are supplied to wholesalers and also to direct users, often to architectural specification. The retail market comprises retail stores selling directly to the public for use in the home; these products, in addition to being functional, often also have to be viewed as aesthetically pleasing. During the 1990s, sales to the retail market increased dramatically as the company gained contracts to supply major retail chainstores in the do-it-yourself and home decor business, companies such as B&Q, Homebase, Wickes. The corporate side of the business tended to be relatively low volume but providing high profit margins; the retail side was relatively high volume, but was increasingly subject to pressures on price and therefore on margins.

Over the past two decades, the company has also expanded by acquisition of other companies manufacturing similar or related products. By the early 1990s, production was based at two sites, Watford and in a town in Devon. At the Watford factory, which was also the site of headquarters office, the manufacturing systems had been subject to a programme of modernisation, including increased automation and other applications of computer technology to the design and production processes. This had enabled the company to keep employee levels down

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