A 182-year-old Glasgow print firm is shaking off the blues affecting the sector by making one of the biggest investments seen in Scotland in recent years as it looks to maintain dramatic growth in sales.
John Watson & Company will spend £5m buying new presses to support continued expansion after increasing turnover by 25%, to £9m, in the year to March 31.
The presses will help Watson meet the increasingly sophisticated demands of producers of spirits like whisky, many of whom are riding high on the back of surging demand in countries such as India.
This new trend is giving a boost to Watson, which has invested heavily in ensuring it can produce items such as labels in different colours to support the brand-building efforts of producers.
The firm has won continuing business from several Scottish-based players which have had a good run lately, including Whyte and Mackay. Trade in the latest year was also boosted by clients in Ireland, France and Russia.
With globalisation likely to increase demand for spirits for years to come, the drinks industry could provide an increasingly lucrative source of work for Watson.
John Watson, chief executive of the eponymous firm, expects to add another 20-25 staff to the 80-strong workforce in Townhead in Glasgow's east end, where the firm is a significant employer.
The latest success continues a remarkable record of achievement for the firm, which is one of the few survivors of the nineteenth century heyday of production in Glasgow. Watson boasts that his firm has never laid off any workers.
The family-owned business was founded by an ancestor of John Watson in a tenement in Glasgow's Black Street in 1825. It developed a steady trade providing general printing services for firms including Arrol, the engineering giant, and selling stationery.
When Watson, who is now 59, took over from his father in 1971 it had six employees and turnover of £40,000. He master- minded the move into supplying drinks makers, who now account for 65% of trade.
In the latest year it made net profits of around £300,000.
Watson continues to print such items as brochures and letterheads for firms in industries including electronics.
There has been a stream of failures among printers in Scotland, where consolidation in industries like whisky production and moves by manufacturers to cut costs by shifting work overseas have made life tough.
However, Watson is proud that his business has managed to compete effectively while remaining in Glasgow.
Watson attributes the success to the pursuit of "lean manufacturing" which entails constant efforts to improve efficiency.
For example, he found that producing one million labels in one run made better sense than producing 10 lots of 100,000, despite the increased stock-holding costs.
He invests heavily in training and praises the adaptability of his staff. Many have been with the business more than 25 years.
While Watson has been at the firm for 44 years he has no intention of selling up.
"This is a family business and it will remain in the family," he said.
Having outgrown the current base, the company is looking for new premises. Watson has told Glasgow City Council that, wherever possible, he will try to relocate within the city limits.
Simon Fairclough, chief executive of the Scottish Print Employers' Federation said: "This has to be the biggest investment by any printing company in Scotland in recent times and should ensure that John Watson & Company continues to prosper."
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