Supply Chain Transition Programme: Moving into Emerging and Growing Markets

A Black Country-based manufacturer is branching out into new markets within the Very Light Rail (VLR) and Light Electric Vehicle (LEV) markets after joining a programme designed to support SMEs in the West Midlands to diversify their products and services and win new customers.

After identifying opportunities for diversification, Midtherm, who are based in Dudley and have been trading since 1968, enrolled onto the Supply Chain Transition Programme in 2024. The programme is funded by the Commonwealth Games Legacy Fund and is being delivered for the sectors of Very Light Rail and Light Electric Vehicles by C&W Business Solutions, in partnership with The West Midlands Growth Company and the Finditin Network, on behalf of the West Midlands Combined Authority and Business Growth West Midlands.

Midtherm began as a family-owned business and has since evolved to meet ever-changing manufacturing requirements. It now comprises several divisions, all working in partnership under the Midtherm brand. The Midtherm group specialises in the design and manufacture of comprehensive solutions including laser cutting, bending, fabrications, flue and chimney systems, coatings, assembly, and design and production of innovative, state-of-the-art air purifying systems.

The Supply Chain Transition programme, which is also supporting the Micromobility sector – delivered by Warwick Manufacturing Group (WMG), and the Aerospace sector – delivered by the Midlands Aerospace Alliance (MAA), was initiated to help suppliers in the West Midlands learn about opportunities for diversification, work towards decarbonisation in historically carbon-intensive industries, and connect with Key Customers and OEMs to build resilient local supply chains for emerging markets.

The Challenge

Sales and Marketing Director for Midtherm, Mark Jones, previously worked within the rail sector and, after joining the business three years ago, he could see the breadth of skills and capabilities the business had within its fabrication abilities and identified an opportunity to steer the business towards supplying the rail sector, as part of the business’ strategy. Implementing the strategy, however, presented challenges because many of Mark’s contacts in the rail sector had moved on or retired, so he spoke with an advisor from Business Growth West Midlands at Dudley Council, who suggested Midtherm joined the Supply Chain Transition programme, as a route into the market.

Mark said: “I had no plans initially to get involved with the VLR and LEV sectors but seeing the capabilities the company has in its fabrication division inspired our strategy to diversify into rail.

“After being introduced to the programme as a route to market, it quickly became a part of my strategy and seemed very interesting to me.”

The Experience

Mark’s journey through the Supply Chain Transition programme has been pivotal for Midtherm as they expand into these new markets.

Mark said: “As well as attending the market education webinar and Meet the Buyer event, held at the Black Country Innovative Manufacturing Organisation (BCIMO), I found the 1:1 engagement with the Supply Chain expert, Dimitrios Anagnostakis, particularly useful for the business as this helped develop a transition roadmap which identified where the business needed to be and what we needed to do to gain those routes into the markets, and it helped me focus on the right path for the business.

“I did know of the markets before joining the programme, from my experience in the rail sector, but I didn’t understand where the development of these markets was heading and this programme helped me improve my understanding about how far these new sectors have come.

“It also provided an opportunity to see the BCIMO and how important this facility is to the sector. After being out of the rail world for three years, this programme was a good way for me to see how far along the development of the VLR and LEV markets are.”

The Results

Midtherm is already seeing positive results following the Meet the Buyer event, which was held at the BCIMO in early February. The business has been in discussion with first tier suppliers and have even brought on a new development for a client, which was showcased at the BCIMO.

Mark said: “It is really exciting to be on the first rung of the ladder in this sector. We are still in the innovation stage and a number of tests and early adoption is still to be done, but we have been in conversations with first tier suppliers following the suggestions from the digital roadmap, which was produced as part of the programme.

“We have connected with the Coventry Very Light Rail project and, whilst we understand that as a metals company our materials may be too heavy, we have been discussing the opportunities we can provide to help support the framework of the composites they will need in place. All things take time within this sector and whilst we are still in the early stages of development we certainly have enough capacity and capability to become involved. This will mean we will be looking to develop our facility and skills during this process as well.

“It is worth putting the efforts in to build up your roadmap and have an effective strategy for diversification. We have already achieved early success and it was a great opportunity to be at the Meet the Buyer event to see those key customers.”

Supply Chain Transition Specialist, Dimitrios Anagnostakis said: “Midtherm joined the Supply Chain Transition Programme with a clear intention, to explore diversification opportunities in the emerging markets of VLR and LEVs. Their primary goal was to gain a deeper understanding of how their current expertise—particularly in fabrication—could align with the needs of these sectors. A key part of this was identifying potential routes into future supply chains, making the right connections, and positioning themselves strategically to take advantage of market developments.

“Our 1:1 engagement was carried out in three stages and working with Midtherm, and especially with Mark Jones, was highly productive. Mark brought a clear vision and deep understanding of the company’s strengths and aspirations. His prior experience in the rail sector, combined with a practical and strategic mindset, created a solid foundation for our discussions.

“Mark was transparent about what he hoped to achieve through the programme, which allowed us to tailor the engagement to suit Mark’s expectations. The company had a compelling offer, supported by strong technical expertise, quality manufacturing processes, and the flexibility required in a well-run business. This could position them as a strong candidate for entering successfully in the emerging sectors of VLR and LEV.

“The outcome of our engagement was a tailored transition roadmap, developed based on Mark’s input. This roadmap served as a strategic planning tool as well as a practical guide, helping Midtherm understand where to focus their efforts to align with sector demands, how to adapt existing capabilities to meet sector-specific standards, and immediate and longerterm opportunities for engagement
with key stakeholders.”

The Future

While Midtherm are still in the early adoptive phase, the business is keen to get involved within all aspects of the rail sector.

Mark said: “Because the development of rail covers a whole spectrum, from heavy rail through to light rail, I believe this is going to open up a lot more opportunities. Whilst there is a need for lighter materials, this has not discouraged us from getting involved with these markets.

“Going forward, we will be looking into upskilling our workers and recruiting another fabricator to the business. We currently work with welding apprentices who are doing very well within their role and benefitting from continual development. We are in contact with local colleges, talking to the students about the industry and giving tours of our factory to develop that initial spark within them for the
manufacturing sector.

“I would, and have already, recommended the Supply Chain Transition programme to SMEs looking to expand their capabilities into these markets, the programme has helped me personally focus on what direction is right for Midtherm to become involved with these markets and what we need to do to develop the skills and requirements for the future. The 1:1 sessions with Dimitrious were extremely helpful, the development of the roadmap was invaluable for me, and it was fantastic to be at the Meet The Buyer event to meet like-minded SMEs and Key Customers.”

Although the Supply Chain Transition Programme is fully subscribed, SMEs interested in this type of support can contact supplychaintransition@cwgrowthhub.co.uk.