Sand-blasting firm wins worldwide contracts after bagging National Enterprise Award

It all began with the identification in 2007 of an opportunity for import substitution.

A manufacturing systems graduate working for Enterprise Ireland in assisting Irish companies to develop exports to the UK, Mr Clendennen saw a gap in the abrasive blasting market.

“No blasting machinery was being manufactured in Ireland — machines used here were being imported from Holland and also from China. I saw an opportunity to manufacture and sell to Irish companies and also to export.”

He registered the company in 2007 but didn’t actively pursue the idea until 2009 at which time he rang 300 potential Irish customers across construction and manufacturing businesses, among others.

Working from home and using his own funding, Mr Clendennen drew up designs for four sand-blasting machines and had them made up by a welder.

In 2010, he began targeting the Irish companies involved in blasting by sending them marketing packs.

“As a new company with an unknown brand it was difficult but after a few years we gained ground and earned a good reputation,” he said.

After briefly outsourcing manufacturing to China, Applied Concepts took on its first employee in 2010 and began manufacturing in Kinnitty, Co Offaly at the end of the year.

“We had our first export to the UK in 2011 when we signed a distributor there”, says Mr Clendennen who shipped four machines to the distributor to convince him of the effectiveness of the company’s products.

Now the company has a range of six abrasive blasting machine as well as blast cabinets. Manufacturing blasting machines remains the core business.

“These are used in construction and renovation as well as vehicle restoration and have been used in a variety projects around the world from bridge restoration in Venezuela to boiler manufacturing in Ethiopia.”

Applied Concepts now sells through distributors in the UK, Belgium, Finland, Hungary and Estonia. It also has had direct sales to several other markets including South America where it now looking for a distributor.

Exports now account for 40% of sales, up from 25% in 2015, and are expected to grow to 50% in 2017.

“The UK is now our largest export market but we expect the Northern European market to surpass it in 2017,” says Mr Clendennen.

Now operating from three industrial premises in Kinnitty and employing seven full-time staff as well as three part-time workers, Applied Concepts is now poised for expansion.

Late last year it purchased a 24,000sq ft factory in Birr and is planning to consolidate operations under one roof with a view to employing an additional 10 staff.

Profitable since 2013, Applied Concepts has, according to Mr Clendennen, been growing turnover by 30% a year for the last four years.

Export opportunities are continuing to present themselves with its products being shipped to Japan, Kuwait and South America in the last four months alone. A major plan for 2017 will be the launch of a new air compressor to power the blasting machinery.

“Typically these machines are engine-powered and cost €14,000 but we have developed a prototype of a machine which will cost €5,000.”

Company:

Applied Concepts

Location:

Kinnitty, Co Offaly

Set up:

2007

Managing director:

Mark Clendennen

Business:

Manufacture of abrasive blasting equipment

Staff:

10.

Exports:

40%.

Website:

www.appliedpi.com