Peter Nicholls has been toiling away in the manufacturing game for more than three decades. And while he doesn’t deny he has picked a tough industry sector forge his career, he wouldn’t have it any other way.

The father of three worked for a number of manufacturing companies before taking over the reins as Managing Director of Production Parts in 1976, at the tender age of 24. From the outset the qualified mechanical engineer had a clear vision for Production Parts and jumped head first into the cut and thrust world of manufacturing. And despite sometimes having the odds stacked against him, Mr Nicholls did his homework when investigating new markets for the business and has managed to grow it from a staff of 20 all those years ago to a staff of 60 today.

Production Parts, started by his late father Arthur Nicholls in 1946, has been through the usual ups and downs that businesses experience over the years. But Mr Nicholls has forged ahead; setting aggressive growth targets for the coming few years which he believes will propel the company into new overseas markets.

The company has internationally accredited quality standards ISO 9001:2000 as well as systems approvals for companies including BAE Systems, Northrop Grumman, Pratt & Whitney and GE Aircraft Engines. It is also the only manufacturing company in Australasia and one of the relatively few companies in the world to have AS 9100 Aerospace Standard quality assurance.

Mr Nicholls and his younger brother Ashley Nicholls, who is the company’s Engineering Director, work as a team to run the business. The pair has not only managed to lead the company through an extensive growth period, they have won more than their fair share of awards. Production Parts won five awards in 2007 alone including Manufacturer of the Year Small Business Champion Awards and the Endeavour Awards Exporter of the Year Award Winner.

“Those sorts of awards help the company to be recognised in new markets, and it’s great for our staff,” Mr Nicholls says. Mr Nicholls says being in charge of a manufacturing business involves some big hours. Aside from his working day in the office Mr Nicholls is also a well known figure in manufacturing circles, and is the National Vice President of the Australian Industry Group and member of the Defence Council.
Mr Nicholls’ role also requires him to be the company’s visionary, best friend and mentor. He needs to stay on top of the constant advancements in technology and has to liaise closely with government departments to make sure he’s making full use of any grants available for research and development.
He says his role is constantly challenging but hugely rewarding.

“To work in management within the manufacturing game you need to be passionate and dedicated, and you’ve really got to live and breathe the business 24/7. Even when you’re having some quiet time at home you’ve got to be thinking about the next marketing plan or how you can increase growth. If you love what you do, you don’t mind.”

He says while the company is a hugely successful operator it is by no means immune to the threats that most in the manufacturing game face. Mr Nicholls says while staff turnover isn’t particularly high, finding qualified staff is one of his biggest challenges.

But he has quietly plotted a path to success over the years, transforming the business from one that was heavily involved in metal works early on into a technologically advanced manufacturer that competes on a global scale. “The business has experienced the highs and lows that all businesses experience depending on the economic environment, but things are definitely looking up in the coming years,” he says.

In fact, thanks to Mr Nicholls, the sky’s the limit for Production Parts, which has one of the most advanced aerospace, defence and general engineering workshops in the country. And it just so happens to be based in Victoria, which is home to the largest aerospace sector in the country. Collectively, Victorian aerospace manufacturers supply design services and manufactured components to commercial and military customers across the globe.

Victorian Government figures show that the state has more than 150 firms and 5000 workers in the lucrative aerospace sector, making up 40% of the national aerospace manufacturing industry. Figures also show that Victoria’s aerospace sector has the highest concentration of aerospace manufacturing in the country, with an annual state turnover of more than $600m and exports of $250m.

These figures show that Production Parts is servicing a thriving industry, but they also show that competition is fierce. Despite this, Mr Nicholls has managed to grow the business by a mammoth 50% during calendar year 2007. And company forecasts for this year (SUBS: 2008) already indicate further growth of 36%, which could well spell the creation of additional jobs.

Mr Nicholls also managed to seal a deal that saw the company join with a dozen other Victorian aerospace manufacturing companies to secure half of the lucrative US Joint Strike Fighter contracts awarded to Australia.

His role also involves keeping a close eye on the Australian Stock Exchange when balancing the company books. “Given we’re big exporters the value of the Australian dollar is hugely critical to our business. The higher it goes above a dollar, the less competitive we become.”

And staying abreast of constantly evolving technology is the other main challenge for Mr Nicholls, who turns to Japan and Europe to source his company’s equipment. And a large portion of his job involves meeting and negotiating with current and potential new clients, including those overseas. In fact, he spends about three months of the year overseas making contact with new and existing clients.

“Face-to-face contact is essential in this business. Even with the modern forms of technology out there, nothing beats meeting someone in person. And the bottom line is that you won’t do business with someone without knowing the names of their kids and what schools they go to, even if they’re on the other side of the world.”

Mr Nicholls says more growth is on the cards. Currently, the company operates across three factory sites in the Melbourne suburb of Airport West, but he revealed that expansion and relocation won’t be far down the track. “I don’t believe we’ll still be on this site in five years’ time. We’re popping at the seams here as it is, so the time will come when we will have to relocate.”

Mr Nicholls says currently, 60% of the company’s clients are in export markets, including the US, France, the UK and Malaysia. “We’re looking at further growth in 2008 within the wider European market in the defence and aerospace sector. We believe there are huge possibilities out there,” Mr Nicholls says. “When you operate in defence and aero you’re up against global competition you’ve always got to make sure you’ve got a competitive advantage.”

Sources: Hendy, Nina, Manufacturing Heroes, Australian Manufacturing Technology, May 2008.