BGI helps the cautious cultivation of new export markets...

Although non-destructive testing (NDT) is a highly-regarded engineering discipline in many UK industries, its importance is not always so highly appreciated in overseas oil and gas territories.

This is especially true in markets with low labour costs, where the true costs of production downtime due to mechanical failure or repair may be less financially self-evident than in the high-cost North Sea environment.

But Aberdeen-based specialist Connect NDT believes there are the first signs of a culture shift in certain key Middle East and African markets towards higher standards of inspection and testing.

So the young company enlisted the support of BGI to ensure it would be ready for new market entry when it judged that the time was right.

Connect NDT was formed in 2000 when directors Keith Davis, Graham Somers and Les Veitch decided to merge their two existing small NDT businesses to gain some much-needed critical mass.

Their decision to merge was fully vindicated when they quickly secured an important North Sea contract.

"As separate companies, the shortfall in resources meant we were sometimes unable to secure larger contracts, but the new merged business met this contractor's criteria and we landed another major contract which set us firmly on our feet," recalls Keith Davis.

The company quickly grew in manpower, employing additional technicians and administration assistants and implemented a quality management system which led to early registration to BS EN ISO 9001:2000 .

Connect NDT uses a number of non-destructive inspection techniques, including magnetic particle, ultrasonic and eddy current, to check drilling and oilfield service equipment on its return from offshore to ensure its fitness for service.

International background

Prior to setting up his own business, Keith had worked the world as a young NDT inspector, trail-blazing in such remote oil and gas territories as Algeria , Romania , Ivory Coast , Nigeria and Oman .

But, having witnessed at first-hand the physical risks of working in such territories, he was happy in his late twenties to return to Aberdeen and take up a full-time position in NDT with a major North Sea service provider.

With such a widely-travelled background, however, Keith and his fellow directors could glimpse the potential for their young company of breaking into new overseas markets.

They were also, however, equally aware of the challenges posed.

"With no 'mother company' to bankroll overseas growth, we took the strategic decision that we would only look at an overseas market if we felt we could afford to self-fund its development," explains Keith.

Two quick business development visits to the Middle East proved abortive for the time being, but the company did manage a significant breakthrough with a two-man maintenance contract in Mauritania .

A strategic approach

By 2004, Connect NDT had grown substantially, at which point it made contact with Business Gateway International (BGI) to develop a strategic approach to the cautious cultivation of new markets.

Following consultations with BGI manager Colin Crabbe, Connect NDT determined on two distinct courses of action.

Firstly, the company would only target one new market at a time in order to maximise its finite resources and manpower. And secondly, it would take a slow-burner approach, using one main market entry contract to break in, before trying to grow its overseas capability.

"After some market research through BGI, Dubai emerged as our most likely first market, and Colin was able to draw on his extensive first-hand knowledge of the Middle East to arrange a grant-supported, structured market visit for us," notes Keith.

Colin put Keith in touch with Scottish Development International's men in the field in the UAE, Hadi Fawzy and Sultan Lootah, who used their embassy contacts to arrange a series of invaluable fact-finding meetings.

"On our SDI visit, we were shown around the Dubai Free Zones, made a number of really good local contacts and got all the information we needed to enable us to set up a company in Dubai when we think the time is right," explains Keith.

"So we are now in the strong position of having a pre-warmed new market entry proposition simmering away quite nicely."

The next stage of development

Connect NDT has now successfully demonstrated the benefits in the UK market of pro-active NDT testing. It embeds its own administration personnel within its major customers' offices, enabling the speedy production of maintenance reports.

"Our admin girls deliver full reporting facilities to customers, who can then prioritise the remedial action required," notes Keith.

"And because they are working within the customers' own communications and procurement systems, they can deliver a complete turnkey operation - raising purchase orders, organising transportation and certification, the whole works.

"Very quickly, the customer starts to view us as an integral part of their own in-house facilities - the acid test being when you start getting invited to their own social outings!"

This high-end service is unlikely to be of immediate marketability in Dubai , but Connect NDT is already planning the next stage of tailored operations for the overseas market.

"Our research has already shown that a couple of local companies are starting to offer low-level NDT inspection services, and we are looking at competing here by recruiting high-calibre Asian engineers and bringing them over to Aberdeen to get their skills fully up to speed," says Keith.

"This would enable us to compete more effectively on a price basis while the overall level of NDT service starts to come up in line with North Sea standards."

So - another good successful example of a growing North East business being able to adapt recognised North Sea technology for emerging overseas markets.

Connect NDT is in no doubt that the strategic approach to export development has paid dividends.

"We would never have been able under our own steam to assess and plan to access an overseas market without BGI's support and expertise," notes Keith.

"We now feel we are in a position of control, ready to push the button whenever the time is right to make the move."

For more details, contact Keith Davis on +44 1224 487778, www.connectndt.com , email keith.davis@connectndt.com