Celebrating 80 Years of Global Innovation and Precision Engineering at PECO

Celebrating 80 Years of Global Innovation and Precision Engineering at PECO

The South West has long been a crucible of pioneering British manufacturing, but few stories are as captivating as that of PECO (Pritchard Patent Product Co. Ltd). Nestled on a hilltop in the picturesque village of Beer, East Devon, this world-renowned family business recently opened its doors to a Made in the South West factory tour.

The event offered regional industry leaders a fascinating, behind-the-scenes look at an iconic brand celebrating its 80th anniversary. Far from just a nostalgic look back, the tour showcased a masterclass in modern operational agility, advanced automation, and world-class lean manufacturing.

Born from a Farthing: The Foundations of an Empire

To understand PECO’s modern success, one must look to its post-war origins. Chairman Michael Pritchard, representing the second generation of the family business, shared the company’s incredible origin story with attendees.

Following the cessation of wartime hostilities in 1946, founder Sydney Pritchard sought a way to revolutionize the model railway hobby. He designed the "Simplex" coupler—a mechanical component used to join model trains together—and pitched it to Meccano (then owners of Hornby) in Liverpool.

Rather than selling the design outright, Sydney was advised by a patent agent to license it for a mere farthing (a quarter of a penny) per coupling. Because each train car required two couplers, PECO earned a half-penny royalty on every unit sold. This steady stream of royalty income provided the exact capital needed to establish the company.

[Sydney Pritchard (1946: Simplex Coupler)] 
                   │
                   ▼ (Licensed to Hornby for 1 Farthing/unit)
[Steady Royalty Capital] 
                   │
                   ▼
[Pritchard Patent Product Co. Ltd (PECO) Established]

By the early 1950s, the company shifted its primary focus to track work. In 1970, outgrowing its previous sites in Branscombe and Seaton, the family purchased an overgrown, steep hillside field in Beer from the local council. Levelling the challenging terrain cost just £500—a risk that paid off spectacularly, transforming a sloping field into a global manufacturing powerhouse.

Inside the Factory: Where Tradition Meets High-Tech Automation

Today, PECO is the largest model railway track manufacturer in the world within its niche, exporting to 45 countries, with its largest markets spanning across the US and Australia. Managing Director Ben Arnold, the third generation of the Pritchard family, guided visitors through an expansive operation where the company controls every phase of the lifecycle—from initial concept to the retail shelf.

PECO produces an astonishing 1.6 miles of model railway track every single day. The factory floor seamlessly blends intricate hand assembly with advanced engineering. Key manufacturing capabilities on display included:

• In-House Tooling: PECO operates a highly sophisticated on-site tool room (with a secondary facility in Paignton) handling both press and injection mold tooling design.

• Special Purpose Machinery: Because model railway manufacturing requires highly specialised processes, PECO designs its own custom machinery, collaborating with regional automation experts like Applied Automation and Totect to integrate them.

• High-Precision Insert Molding: A core corporate specialism where steel rails are inserted directly into molds, allowing plastic to be molded precisely around them.

• Press Work & Finishing: Advanced press units crop rails and form metal switches, while dedicated spray and pad-printing lines add hyper-realistic details to miniature wagons and coaches.

Beyond manufacturing, PECO remains a multi-faceted business. It publishes Railway Modeller, the UK's leading hobby magazine, and Continental Modeller on-site, which account for roughly 5% of its modern revenue. While its famous 9-acre Pecorama tourist attraction was restructured in late 2024 to focus on exclusive seasonal events centered around the Beer Heights Light Railway, the manufacturing facility has scaled up significantly, now representing 95% of the business.

A Champion of Digital Transformation

A core highlight of the tour was PECO’s aggressive drive toward operational efficiency. Spurred by a massive surge in global hobbyist demand during 2020, the company embarked on a comprehensive lean manufacturing journey.

The crowning achievement of this initiative was the implementation of a new ERP system, Epicor Kinetic, replacing a legacy network of disconnected spreadsheets and Sage software. Following a meticulous selection process reviewing 19 different systems, PECO went live on June 1st last year.

The transition was a monumental triumph. Proving that "Go Live" was just the beginning of continuous improvement, PECO’s seamless digital transformation was so successful that Epicor recently named them the Implementation Champions for Epicor Europe, beating out every other deployment across the continent.

Optimism for UK Industry

PECO’s longevity is anchored by its remarkable workforce of over 170 people, many of whom have been with the business for over 30, and in some cases 50, years. This deep-rooted expertise, combined with cutting-edge technology, left a profound impression on the visiting delegates.

Reflecting on the success of the event, Jason Pitt of Made in the South West captured the collective sentiment of the tour:

"PECO is a fantastic example of why British industry has every reason to be optimistic about the future. The tremendous variety of engineering, the intricate craftsmanship, the obsession with detail, and the deep-rooted heritage on display here create a unique blueprint that would be incredibly difficult, if not impossible, to replicate. I walked away from this tour eager to share their story; it is living proof that UK industry is not just surviving, but thriving in every corner of our country."

As PECO celebrates 80 years of engineering excellence, this hilltop factory in Devon stands as a shining beacon of British manufacturing, proving that with precision, passion, and continuous innovation, a family business can confidently lead the global market.