msp Tenant Case Study: IPEC

IPEC’s roots are in the University of Manchester’s Engineering School and, although it was formed over a decade ago, it still has something of the air of a new start-up, with new technology being exploited and new markets being addressed. However, as we shall see, there is perhaps another reason as well.

The Company was formed in 1995 to provide diagnostic services and partial discharge monitoring to the electricity supply industry and those large industrial users of electricity where this is a critical issue. Leakage of electricity from high voltage lines can be an expensive problem to the supply industry, and IPEC developed technology for the inspection and testing of the myriad of wooden poles which carry electricity around even the remotest areas of the UK. They moved to msp in 1998.

By 2002, this had developed into a thriving small business, with big contracts, 8 technical experts and a number of vans touring the countryside. Then came a blow which was totally unexpected and could hardly have been included on such a firm’s risk register: the epidemic of foot and mouth disease, which completely prevented the testers from accessing the poles! Business slumped, and IPEC had to retrench.

It says a lot for the resilience of the company and the commercial relevance of its technology that it has grown again, with 8 full-time and a number of part-time employees, innovative products and markets, and with all the excitement and expectation of a new business venture. Investment from a major customer in the supply industry has enabled them to rework their technology, and they have won several innovation awards.

Their principal product is a novel monitor that measures partial electrical discharge stemming from defects in high voltage insulation, either through manufacture or ageing. From the pattern of signals, they can work out the cable’s current and potential future condition. Colin Smith, IPEC’s Chief Executive, explains: “The testing is real-time and continuous, and we have beaten our competitors by developing a package that is reliable, affordable and which makes business sense for the user. There is no one with this level of technology and sophistication.”

IPEC are now working overseas much of the time, with major customers as far afield as chip manufacturers based in Taiwan, who are big users of electricity. This is a considerable challenge to a small company which wants to expand but has not found it easy to secure the necessary investment. “We have been under-funded,” explains Colin, “and it’s a big challenge to give the customer what we know he wants and which we know we can provide, without the extra investment we would really like to have. But we are doing it, and we are growing.”

The location of IPEC on msp has been of considerable benefit to them. It gives them an enhanced image, a good location with adequate car parking, excellent communications and close proximity to the University. They have liked the networking meetings and enjoy the relaxed atmosphere of the Café on the Park. They are currently planning to expand from their present, rather small office to other accommodation within msp.