‘Our links to Ethiopia are what I’m most proud of’ says Grantham businessman

A Grantham business has built up a reputation that reaches far beyond the town.

Although its work is predominantly in the UK, storage solutions business Raxel has built a strong link with an African country, where it has become well known for installing warehousing systems and training workers in their operation.

At the helm of the business, which is based on the Alma Park Industrial Estate, is managing director Matt Daniele.

Matt, 40, tells us how the business has grown and how a first step into Ethiopia has blossomed into a close trading relationship with the country.

Tell us about the business.

Raxel fits out warehousing with pallet racking, shelving, mezzanine floors and associated equipment – we take care of all the internal fitting out.

Among those we’ve worked with are the NHS, logistics company DHL and Bentley Motors.

The business was established 37 years ago and I’ve been with the company for 16 years. I’ve owned it in some form for eight years. I joined as a project salesman when John Williams was the managing director.

I hit my targets year on year and worked my way up the company ladder, and the business grew and increased turnover above £2 million a year.

Sadly, John died unexpectedly six years ago and I took over the business. We employ 12 people and use contractors as well.

How did the business come to work in Africa?

We had an enquiry from a non-governmental organisation in Ethiopia, supported by USAID. It funded the governmental ministry of health which ran healthcare facilities for people with HIV and AIDS. They wanted someone to supply equipment for warehousing and help locals learn how to set up the supply chain.

The contract was to fit out 10 warehouses and teach locals in the country how to install them. The local contractors could then go out and be self-sufficient. It gives me a sense of pride that we’ve trained up local people who can now do the job, and now they’re getting an income.

That first job has led on to many other things. For example, we helped arrange a training seminar for the Department of Trade and Industry at the British Embassy in Addis Ababa, while another notable job was kitting out an Ethiopian Airlines warehouse to store aircraft tyres – they have to be treated carefully and we designed a system to enable that. The name Raxel is now quite well-known within business over there. Although our work is predominantly in the UK, our links to Ethiopia are what I’m most proud of.

What are some of the most interesting or challenging items you’ve provided storage solutions for?

We’ve worked with deep sea oil exploration companies. We’ve stored aircraft components for Rolls Royce, and I’m quoting for wing storage for a plane manufacturer, which needs storage for 15-metre components. I enjoy what I do – the work varies every day. You never quite know what you’re going to be asked to do.

What’s next for Raxel?

I’m hoping to grow the business. Before Covid-19 happened we were in the middle of buying a new building in Grantham, so that’s on hold for the time being. I’m considering setting up a small warehousing company in Ethiopia and would like to spread into other African countries. We’ve actually supplied to Liberia and Zambia recently. I’d like to grow Stommpy, which is an Italian business that’s around 16 years old and we’ve held the UK side of the business for five years. Stommpy provides impact safety systems for warehouses and factories and has a range of shockproof products.

How has the coronavirus pandemic affected your business?

Generally, for the warehousing industry it’s just dropping off. From the Monday when Boris Johnson said we’re in lockdown, it went very quiet. I’ve still got crews carrying out maintenance and repair jobs – if pallet racking is damaged then potentially it could fall down, so safety critical work is ongoing. We’ve furloughed a lot of people, but we still have work coming in so projects will be there when this all finishes. What happens next is a bit of an unknown for everybody, but it’s going to pick up. The critical thing for most businesses is cashflow and having the resources to survive however long this crisis is going to last for. I can’t imagine it being any more than a couple of months before there’s some form of normality back for businesses. When this is all over I will be trying to recruit and kick start growing the business again.

• Information: www.raxel.co.uk

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