Summary of "James Reed: All About Business" - Episode 28: How UK Businesses Can Improve Efficiency in Manufacturing with Livio Manzini

Podcast Information:

• Title: James Reed: All About Business
• Host: James Reed CBE, Chairman and CEO of Reed Group
• Guest: Livio Manzini, Chairman and CEO of Bell Holdings, President of the Italian Chamber of Commerce and Industry in Turkey
• Episode: 28. How UK businesses can improve efficiency in manufacturing
• Release Date: May 19, 2025

Introduction

In Episode 28 of "James Reed: All About Business," host James Reed engages in a comprehensive discussion with Livio Manzini, the Chairman and CEO of Bell Holdings. The conversation delves into various aspects of manufacturing efficiency, the challenges and strategies within UK businesses, and the broader implications of global trade dynamics. Livio brings a wealth of experience from his three-generation family business based in Turkey, offering actionable insights for business leaders aiming to enhance their operational strategies.

Early Career and Apprenticeship

The episode begins with James Reed highlighting Livio's formative years, particularly his apprenticeship under Philippe d'Estelle, a renowned figure in the recruitment industry. Livio recounts how, at a young age of 24, he was appointed as the general manager of Echo's UK operations during a tumultuous period marked by Brexit and rising tariffs.

Livio Manzini [03:23]: "Philip Destoz was my first employer after school... he was very good at seeing the potential in people."

This early responsibility taught Livio invaluable lessons in leadership, cost management, and customer focus, laying the foundation for his future endeavors in the manufacturing sector.

Management Philosophy: Cost-Consciousness and Customer Focus

Livio attributes much of his management philosophy to his mentor, Philippe d'Estelle. He emphasizes two core principles:

1. Cost-Consciousness: Philippe instilled a stringent approach to cost management, often going to great lengths to minimize expenses. From opting for super cheap travel arrangements to sharing hotel rooms, Philippe's frugality was a testament to his dedication.

   Livio Manzini [04:29]: "He was extremely cost-conscious... to save money, we once went to New York and had to share a room because they were very expensive."

2. Customer Focus and Follow-Up: Philippe's approach to customer relations was meticulous. He would personally visit branches, ensuring that customer feedback was documented and acted upon rigorously.

   Livio Manzini [05:03]: "He would not visit a branch without a customer visit... next time I came, I would follow up on what we discussed."

These principles not only saved the company but also fostered a culture of excellence and accountability.

Rethinking the Calendar: A Call for the Roman Calendar

A unique and engaging segment of the conversation revolves around Livio's advocacy for reverting to the original Roman calendar, which starts the year in spring rather than January.

Livio Manzini [07:57]: "Everything said that it's actually pre-Roman... the cycle of 12 months in a year is closer to nature."

He argues that aligning the calendar with natural cycles can enhance productivity and well-being, drawing parallels with Lithuania's Persian New Year celebration, Nevruz, which marks the beginning of spring.

This discussion extends to business practices, where Livio shares Reed Turkey's innovative approach of dividing the year into 13 four-week periods, facilitating more consistent and comparable financial reporting.

James Reed [13:07]: "We have 13 four-week periods... you get 13 goes at sort of making sales."

Improving Manufacturing Efficiency

The conversation transitions to manufacturing efficiency, where Livio critiques the traditional five-day workweek prevalent in the UK compared to Turkey's six-day schedule. He highlights the competitive disadvantage this presents, especially in continuous production environments.

Livio Manzini [25:30]: "The Turkish worker works six days a week... productivity is not just a question of money, it's a question of flexibility of attitude to work."

Livio emphasizes the importance of aligning work schedules with production needs to maximize efficiency and reduce idle machinery time.

Turkey's Role in Global Manufacturing

Livio provides an in-depth analysis of Turkey's strategic position as a manufacturing hub. He cites factors such as:

• Geographical Advantage: With a large landmass, Turkey offers ample space for greenfield sites.
• Infrastructure: Excellent transportation, telecommunications, and banking systems.
• Workforce: A young, educated, and industrious population with high productivity levels.
• Customs Union with the EU: Facilitates smoother trade relations.

Livio Manzini [17:29]: "Turkey is a very good manufacturing hub... top class banking system, good universities, big population."

These factors collectively make Turkey an attractive alternative to traditional manufacturing powerhouses, especially as companies seek to decouple from China.

Navigating Global Trade and Protectionism

Livio discusses the rising trends of protectionism and trade wars, expressing concern over their potential to hinder global economic growth.

Livio Manzini [21:35]: "Trade wars are only losers... there are only losers."

He underscores the necessity for businesses to stay ahead through continuous innovation and automation to remain competitive in a fragmented trade landscape.

Adapting and Innovating in Business

Highlighting Bell Holdings' adaptability, Livio shares the company's evolution from soap manufacturing to packaging solutions. He attributes this success to:

• Agility: Quickly responding to market changes.
• Investment in Technology: Upgrading machinery and automating production lines.
• Benchmarking: Regularly comparing performance against international standards.

Livio Manzini [23:03]: "Our motto has always been Adapt or die."

This proactive approach enabled Bell Holdings to thrive despite the removal of protectionist barriers and increased global competition.

Sustaining a Family Business Across Generations

A significant portion of the discussion focuses on transitioning leadership within a family-run business. Livio emphasizes the importance of:

• Adaptability: Embracing change and innovation.
• Benchmarking: Continuously assessing and improving operational standards.
• Succession Planning: Mentoring the next generation without coercion.

Livio Manzini [32:04]: "It's adaptability, being agile, adaptive and open to new ideas."

He shares his personal journey of leaving an international career to join the family business, underscoring his entrepreneurial spirit and commitment.

The Intersection of Service and Manufacturing

Livio highlights the synergy between service-oriented approaches and manufacturing processes. By prioritizing customer-specific requirements and maintaining long-term relationships, Bell Holdings has achieved sustained success.

Livio Manzini [45:11]: "We have developed long-standing relationships... because you are giving them what they want in terms of quality but also service."

This blend of service excellence with manufacturing efficiency sets Bell Holdings apart in a competitive market.

Climate Change and Sustainable Manufacturing

Addressing one of the most pressing global issues, Livio discusses the challenges and imperatives of sustainable manufacturing. He advocates for:

• Recycling Initiatives: Launching businesses focused on recycling plastic packaging.
• Government Policies: Implementing fiscal policies to incentivize the use of recycled materials.
• Innovation: Investing in biodegradable materials and advanced recycling technologies.

Livio Manzini [48:34]: "If you want people to use more recycled plastic material, you have to make the virgin plastic material more expensive."

He stresses the need for coordinated global efforts to effectively tackle environmental concerns without compromising economic competitiveness.

Closing Thoughts and Advice for Entrepreneurs

In the concluding segments, Livio offers valuable advice for aspiring entrepreneurs:

1. Start with a Dream: Begin with a clear vision or problem you intend to solve.
2. Prepare for Challenges: Entrepreneurship involves significant dedication and overcoming failures.
3. Seek Objective Feedback: Utilize virtual boards and associations to gain unbiased perspectives on your ventures.

Livio Manzini [40:25]: "You need to have spotted something that you are making. Going to make a different hamburger... you set up to make a better sock or whatever."

He reiterates the importance of adaptability, continuous learning, and maintaining a strong customer focus to drive business success.

Notable Quotes with Timestamps

• Livio Manzini [23:03]: "Our motto has always been Adapt or die."
• Livio Manzini [32:04]: "It's adaptability, being agile, adaptive and open to new ideas."
• Livio Manzini [45:11]: "We have developed long-standing relationships... because you are giving them what they want in terms of quality but also service."

Conclusion

Episode 28 of "James Reed: All About Business" offers a rich exploration of manufacturing efficiency, global trade dynamics, and sustainable business practices through the lens of Livio Manzini's extensive experience. Livio's insights underscore the importance of adaptability, continuous innovation, and a customer-centric approach in navigating the complexities of modern business landscapes. For UK businesses aiming to enhance their manufacturing efficiency, the lessons from this conversation are both actionable and profoundly relevant.