5 minute read • published in partnership with Lloyds
The best defence – How patient investment earned a small engineering firm its place in MOD supply chains
European Heathyards shows how patient, long-horizon investment can build competitive advantage. By continuously upgrading facilities, expanding capacity and strengthening capabilities, the family-owned business has positioned itself to meet rising demand from defence and nuclear, setting the stage for its most ambitious expansion yet.
A few minutes inside European Heathyards’ purpose-built manufacturing facility and it quickly becomes clear that the firm treats progress as standard practice, not an occasional effort. Centrally located in the West Midlands, the business has earned a reputation for high-integrity engineering, welding and fabrication services to sectors where failure is not an option.
Eight workshops equipped with overhead cranes ranging from 5 to 100 tonnes, a fully sealed, clean conditions bay for nuclear decommissioning and power generation, a state-of-the-art NDT inspection and radiographic X-ray lab, high-spec welding cells, and a robust apprenticeship programme all signal a leadership team that anticipates demand and builds capability ahead of it.
The latest demonstration of that foresight is a multi-million-pound expansion, announced as part of Heathyards’ 50th anniversary, that will strengthen operational capacity across two rapidly growing markets.
Scaling up to meet booming demand
Nuclear and defence account for around a quarter of Heathyards’ output, but that share is set to rise sharply as government spending ramps up. The UK’s defence strategy commits billions to submarines, frigates and other programmes, while civil nuclear is regaining momentum through conventional new builds and the small modular reactors (SMRs) that are edging closer to delivery.
For suppliers with the right expertise and proven track record, the opportunity is huge, says Craig Nash, Operations Director. “We already supply precision components for a variety of defence programmes. We’re also working closely with Rolls-Royce on high-specification heat exchangers and vessels for the UK’s SMR programme. The pace of these programmes is relentless, and we have to be ready to scale at the same speed.”
Heathyards’ latest expansion is designed to do exactly that. Plans include upgrades to existing bays, two new workshops, additional office space, and a dedicated onsite training facility. Once complete, both manufacturing capacity and workforce will increase by around 50%, with nearly 60 new roles created.
Lloyds has been a constant partner throughout Heathyards’ journey, from providing the mortgage that transformed open fields into today’s thriving facility, to helping secure a grant to build the clean conditions bay.
“Lloyds understands our business, our ambition and our strategy,” Craig says. “The team keep us updated on industry trends and make introductions, such as to the Manufacturing Technology Centre (MTC) in Coventry. As we equip the new workshop with the latest tools and machines, knowing we have the support of Lloyds will be invaluable.”
Tony Hanley, Relationship Director at Lloyds, added: “I am proud to have built a strong partnership with Craig, Aaron, and Barry at Heathyards – a business with an exceptional heritage. It’s inspiring to work with a team that combines tradition, a focus on quality and innovation, with forward-thinking ambition. By aligning with their vision and long-term aspirations, I’ve been able to plan ahead and ensure the right support is in place for their exciting expansion journey.”
Tackling the biggest bottleneck
While the expansion will provide the physical room to grow, technology is set to determine how effectively that space is used. Heathyards has already introduced automated and semi-automated processes to boost accuracy, repeatability and throughput. Three cold metal transfer (CMT) machines for applying 360° spiral weld overlay to tube have strengthened its position supplying power generation and waste-to-energy sectors, complemented by a robotic arc welding system that further raises quality and efficiency.
A recent European technology showcase reinforced where the sector is heading. “We saw AI-driven automated welding systems that can map a component, identify the seam and complete the weld almost autonomously,” Craig says. “VR-based training tools were just as impressive, giving learners the feel of welding without burning through materials. Both are technologies we’re now actively exploring.”
Yet despite the promise of AI and automation, Craig is confident that technology won’t replace humans outright. “While we are looking to increase our use of automation and robotics, complex, one-off fabrications will always rely on skilled welders. That’s our bottleneck. Finding people with the right skill and experience is a constant challenge.”
It’s why Heathyards invests heavily in apprenticeships, taking on eight craft and technical apprentices a year, and why the expansion includes a training school. Current providers offer strong foundational teaching, but the firm’s increasingly specialised work requires a more tailored approach. The solution for Heathyards is to bring training under its own roof, delivered by highly experienced welders approaching retirement. “They’ve spent decades mastering their craft. Passing that knowledge on is fantastic for them, and essential for the business,” Craig says.
Long-term, the ambition is to supply skilled welders across the wider industry, creating a pipeline of talent for the UK’s manufacturing base. For now, the priority is training workers to staff its expansion, where demand is rising fastest and the skills gap is felt most sharply.
Stamp of approval
Accreditations play a key role in Heathyards’ growth. Quality systems certified to ISO 9001, 14001 and 18001 form a compliance spine that runs through every stage of production. Alongside these, a growing list of ASME stamps – U for pressure vessels, S for power boilers, PP for pressure piping, and R for repair – enable the firm to compete in high-stakes markets worldwide.
Having completed the government-backed Fit for Nuclear (F4N) programme, the next target is the ASME N stamp, the global benchmark for nuclear-class fabrication. “Only two UK companies hold it, a valve manufacturer and a casting business. No fabricator,” Craig explains. “Securing the N stamp will give Heathyards a unique differentiator, reinforcing our position at home and internationally.”
Digital security is treated equally seriously. ISO 27001, Cyber Essentials and Cyber Essentials Plus verify that Heathyards’ systems, networks and data-handling processes meet stringent industry requirements – non-negotiable when serving the likes of civil and defence nuclear.
Environmental credentials are also advancing. A £250,000 rooftop solar panel installation has already halved energy bills, saving nearly £50,000 in just six months. Supported by a £100,000 grant from Walsall Council and a £100,000 corporation tax offset, the installation is expected to pay for itself within three years.
Formal accreditations are paired with grassroots operational improvements. Lean thinking is being embedded across the business, with employee-led initiatives actively encouraged. One recent example involved replacing single-use welding gas bottles with large holding tanks that feed ring mains, saving hundreds of labour hours previously lost to changeovers and eliminating ongoing rental costs.
Breaking into highly regulated supply chains is no small feat, but once achieved, contracts often represent a generation of work. For a small, family-owned firm like Heathyards, that continuity is vital. With planning permission secured for its expansion, and continued investment in people, processes and facilities, Heathyards is building the capability and capacity to secure and sustain that continuity for decades to come.
