Investing to expand production is not a phrase that crops up frequently among Britain’s farm equipment manufacturers, but it was the action Bailey Trailers was forced to take to meet increasing demand.

Last autumn, at the height of the recession and while some manufacturers were concerned about unsold stocks, Bailey Trailers completed a £2.2m investment programme. The money was spent on new production equipment plus a move to a new factory and office complex with space to expand production. At the same time, the company increased its labour force from 40 to 56.

The weekly production limit at its previous factory was 12 trailers, well short of potential sales. The target for the new factory is 20 a week to be achieved within two years, but weekly output is already averaging 19 after less than one year.

As well as extra production, the investment is also improving efficiency, and the company is installing new computer equipment to ensure a tighter timetable for its production schedules.

In spite of the extra production, keeping up with demand is still causing problems, says Michael Bailey. The company quotes three weeks on new orders for grain trailers, but 22 weeks to get it delivered.

The new production facilities are the latest development for a company that became involved in trailer production as a sub-contractor for other manufacturers.

That was in 1982 when the company, recently established by the Bailey family to make steel-framed farm buildings, was offered fabrication work making trailer chassis. Later, when the chassis contracts ended, it decided to use the newly acquired expertise to make its own trailers.

As trailer sales increased the firm closed the steel-framed buildings side of the business to concentrate on expanding the trailer operation. Bailey Trailers is still owned and run by the Bailey family, including Michael who is responsible for marketing while his brothers Richard and Stephen deal with production.

Trailers are one of the few farm equipment sectors where UK firms still dominate their own market, supplying an estimated 85-90% of UK sales. Although the priority for Bailey Trailers has been keeping pace with the growth in UK sales, it has developed some export market,s too. Some 70-80 trailers a year are shipped to Norway and Bailey trailers can be found working as far afield as New Zealand and Mongolia.

Michael Bailey believes there are opportunities to increase export business now that extra production means increased availability, but he is also optimistic about prospects for UK sales.

Higher grain prices should bring increased demand from the arable sector, and the recent debate about stopping power has created interest in braking systems, which will encourage some customers to upgrade to a safer trailer.

The EU proposal is that trailer braking must achieve 50% braking efficiency. Although this legislation has yet to be introduced, Bailey Trailers is already fitting this type of braking system as standard equipment on its new grain and root trailers from 12t capacity upwards.

Company: Bailey Trailers Ltd

HQ: Pride Parkway, Sleaford, Lincolnshire

Owned by: Bailey family

Employees: 56

Annual turnover: £10m

Principal products: Agricultural trailers