Catering equipment giant Ali Group is focused on making its production processes more efficient and leveraging its huge purchasing power in a bid to ward off the rising raw material costs that continue to impact the manufacturing industry.
The Italy-based commercial equipment supplier spends millions of euros on manufacturing each year due to owning almost 70 brands, including renowned kitchen names such as Falcon, Lainox, Moffat and Williams,
John Braithwaite, business and brand development director international at Ali Group, admits that hikes in raw material prices remain a “challenge” for the business but he insists the organisation is well positioned to manage its costs accordingly.
“I am not going to deny that it is a challenge in the current global economic climate,” he said. “Whether our factories are in America, Australia, in China or Europe, it is a challenge to balance the manufacturing costs and the selling costs and keep your product competitive in the market. But because the Ali Group is such a major manufacturer, we can use that strength to purchase raw materials more economically.”
Despite the economic climate, Braithwaite says Ali Group continues to invest in its production infrastructure and is committed to improving levels of automation where necessary, citing the current construction of a new factory for its French rotisserie brand, Rosinox, as an example. It is currently replacing an existing facility that is no longer conducive to 21st century manufacturing.
While Braithwaite acknowledges that Ali Group does make group-wide purchases to achieve economies of scale, he stresses that it is not the company’s primary weapon for combating any increases it may face in raw material costs.
“The Ali Group fights rising raw material costs by constantly working on improved efficiency more than bulk buying,” he said.