DRIVING I N N O VAT I O N FOR AUTOMOTIVE EXCELLENCE
DRIVING I N N O VAT I O N FOR AUTOMOTIVE EXCELLENCE Blending local talent with cutting-edge technology, HESTO Harnesses is revolutionising South Africa’s automotive component manufacturing landscape and championing ingenuity and sustainability. Managing Director, Alex Holmes, tells us about the company’s commitment to quality and employee empowerment Writer: Rachel Carr | Project Manager: Tyler Sheppard
H
ESTO Harnesses (HESTO) is one of the Southern Hemisphere’s leading manufacturers of automotive electrical distribution systems, supplying Toyota, Ford, and Isuzu whilst employing over 7,000 people in KwaZulu-Natal, South Africa (SA). Supplying world-class wiring harnesses and combination meters to some of the most respected automotive brands, the company’s operations make it one of the largest employers in the region, utilising advanced production technologies and skilled teams to produce complex 2 | Manufacturing Outlook Issue 14
systems that meet global automotive quality standards. Established more than 35 years ago, HESTO was incepted as a strategic collaboration between three prominent manufacturing companies – Hella, Smiths, and Toyota – to bolster the burgeoning automotive industry in SA. Approximately 20 years ago, it entered into a technical licensing agreement and a joint venture with Yazaki Corporation (Yazaki) – the world’s largest electrical distribution systems manufacturer. As a result, the company is 74.9 percent owned by Metair and
25.1 percent by Yazaki, effectively combining global expertise, engineering capability, and industryleading innovation, thereby enabling the implementation of international best practices whilst delivering solutions tailored to the South African market. “That evolution from a regional supplier into a major manufacturing partner is the thread running through HESTO’s story: a company rooted in KwaZulu-Natal, strengthened by global collaboration, and now preparing for a more complex, electrified, and sustainability-driven
HESTO HARNESSES AFRICA
automotive future. One thing has remained constant: our commitment to quality, innovation, and people,” introduces Alex Holmes, Managing Director. “These three pillars continue to shape how we grow and position HESTO for the future. Being based in KwaDukuza has significantly influenced our business. Whilst operating in a semi-rural environment presents challenges, it has also become one of our greatest strengths,” he adds. This unique blend of local engagement and global collaboration
positions the company to overcome challenges and prosper in a competitive landscape. “What truly sets HESTO apart is our people. As wiring harness manufacturing is people-intensive, our workforce is at the heart of our business; over the years, we’ve built a reputation for developing local talent, creating meaningful employment opportunities, and equipping our people with the skills they need to succeed. The commitment, adaptability, and resilience of our employees are what enable us to consistently deliver the quality our
customers expect,” continues Holmes. “Of course, operating outside a major metropolitan area also requires us to think differently. We invest significantly in skills development, employee well-being, and the infrastructure that supports our workforce because we recognise that building a sustainable business goes hand in hand with building a strong community. Ultimately, our location isn’t something we’ve had to overcome; it’s become one of the reasons we’ve been able to build such a resilient and people-focused organisation.” Manufacturing Outlook Issue 14 | 3
HESTO HARNESSES AFRICA
PAVING THE WAY FOR FUTURE SUCCESS In recent years, HESTO has experienced significant growth, expanding its customer base to include the Ford Ranger programme alongside its long-standing partnership with Toyota. This expansion led to the establishment of a new 30,000-square-metre (sqm) manufacturing facility and the creation of around 5,000 jobs in a relatively short period, enhancing the company’s capabilities and broadening its experience, positioning it as a trusted partner to global automotive manufacturers. “We are now focused on solidifying the foundations we’ve created, and we want to maintain the quality and reliability our customers have come to expect,” Holmes determines. “We are also planning an exciting and significant investment in our solar energy project, utilising approximately 60,000 sqm of roof
space across our facilities to harness renewable energy to support our operations.” Beyond reducing HESTO’s environmental footprint, the solar project is an investment in longterm business resilience, helping the company manage future energy demands whilst advancing its broader environmental, social, and governance commitments (ESG). “We continue to invest in the systems, infrastructure, and capabilities that will support our future growth. Whether it’s developing our people, strengthening our manufacturing operations, or improving sustainability, every investment we make is guided by one simple principle: creating a business that is stronger tomorrow than it is today.” For HESTO, sustained growth involves more than just expanding production; it means developing an organisation that supports long-term success. As the company evolves, it
is investing in systems and processes to remain agile, resilient, and future-ready. Following the successful expansion of HESTO’s Ford programme, one of the company’s key priorities is securing future business by continually demonstrating its engineering capability, manufacturing excellence, and ability to meet the increasingly complex requirements of global automotive customers. “Vehicle programmes are evolving at a rapid pace, with hundreds of engineering changes introduced throughout a product’s lifecycle, and our ability to respond quickly and accurately is critical to maintaining our competitiveness,” he points out. To support this, HESTO is investing in areas such as product lifecycle management, engineering systems, and enterprise resource planning (ERP), enabling greater visibility, consistency, and collaboration across the business.
HESTO HARNESSES AFRICA
AS THE LARGEST EMPLOYER IN THE REGION, WHAT IMPACT DOES HESTO HAVE ON THE COMMUNITY, AND HOW DOES THE COMPANY MAINTAIN EMPLOYEE SATISFACTION AND RETENTION? Alex Holmes, Managing Director: “HESTO’s impact extends far beyond the walls of our manufacturing facilities. We recognise that our success is closely linked to the well-being of the communities in which we operate, and with that comes a responsibility to create opportunities, support development, and make a meaningful difference in people’s lives. “That responsibility begins with our own employees. We believe when people feel valued, supported, and equipped to succeed, they do their best work. That’s why employee well-being is one of HESTO’s core values and a principle that guides many of our decisions. “From creating a safe working environment and investing in learning and development to providing quality facilities and initiatives that support employee well-being, we’re committed to creating a workplace where people can build long-term careers.
“ W H A T T R U LY S E T S H E S T O A PA RT I S O U R PE O PL E . AS WIRING HARNESS MANUFACTURING IS PEOPLE-INTENSIVE, OUR WORKFORCE IS AT THE HEART OF OUR BUSINESS; OVER THE YEARS, WE’ VE B U I LT A R E P U T A T I O N FOR DEVELOPING LOCAL TALENT, CREATING MEANINGFUL EMPLOYMENT OPPORTUNITIES, AND EQUIPPING OUR PEOPLE WITH THE SKILLS THEY NEED TO SUCCEED” – ALEX HOLMES, MANAGING DIRECTOR, HESTO HARNESSES
“More broadly, we’re equally committed to investing in the communities that support us. Through our corporate social investment initiatives and Broad-based Black Economic Empowerment (B-BBEE) programmes, we’ve contributed to projects such as school libraries and educational development, helping to create opportunities that extend beyond our business. “We also recently invested in new employee canteen facilities to provide healthier, high-quality meals because we recognise that something as fundamental as good nutrition contributes directly to well-being, productivity, and dignity in the workplace. “Retention is not something we achieve through a single initiative; it’s the result of building an organisation where people feel respected, trusted, and part of something bigger than themselves. If we continue to create opportunities for our people to grow, whilst making a positive contribution to our community, then we believe we’re creating a business that people are proud to be part of.”
Manufacturing Outlook Issue 14 | 5
HESTO HARNESSES AFRICA
“Whilst some investments may not always be visible to our customers, they strengthen the foundations of our organisation and allow us to deliver with greater precision, reliability, and efficiency. “Our goal is not simply to grow; it’s to build a business that can sustain that growth for decades to come. By strengthening our internal capabilities today, we’re ensuring HESTO remains a trusted partner to our customers and a resilient business for our shareholders, employees, and the communities we serve,” Holmes ardently expresses.
BUILDING A RESILIENT SUPPLY CHAIN HESTO’s supply chain is vital to its success, accounting for around 50 percent of sales costs. As such, a strong supplier network enables the company to consistently deliver quality and reliability to its customers. Utilising three main sourcing channels, the first of which is through Yazaki’s Global Purchasing Organisation in Singapore, allows HESTO to leverage established supplier relationships and the purchasing power of a leading automotive component manufacturer. The second supports the company’s Ford programmes, which involve close collaboration with suppliers in North and Central America and other global markets to meet Ford’s engineering, quality
standards, and performance requirements. The third focuses on local procurement by partnering with South African suppliers such as Unitrade and HellermannTyton. This collaboration not only meets local content requirements but also strengthens the country’s automotive manufacturing value chain and improves supply chain responsiveness. “Across all three sourcing channels, quality is a non-negotiable expectation - it’s the foundation of every supplier relationship we establish. From there, our focus shifts to continuous improvement. “We work collaboratively with
suppliers to identify opportunities for product enhancements, innovation, and improved manufacturing performance, ensuring we continue to meet the evolving expectations of our customers and the global automotive industry,” asserts Holmes. Certain criteria affect the decisions made regarding the sourcing of raw materials and components. “In the automotive industry, sourcing decisions have typically centred on three key criteria: quality, cost, and delivery (QCD). Those principles remain the foundation of every sourcing decision we make. However, today’s environment requires us to look beyond traditional measures,” he outlines.
Increasingly, resilience has become a critical factor in supplier selection. The disruption experienced across global supply chains over recent years has demonstrated that quality products delivered at the right price are only valuable if suppliers have the resilience to continue operating in an increasingly unpredictable world. “When we assess potential suppliers, we look not only at their quality performance and competitiveness, but also the longterm sustainability of their business. Financial stability is an important consideration, as we’ve seen the impact supplier failures can have on the continuity of supply across the automotive industry,” warns Holmes. “Therefore, we prefer suppliers with flexible manufacturing footprints across multiple locations, which enables us to adapt to geopolitical events or logistics challenges as they arise, ensuring greater continuity for our customers.” Thus, whilst QCD remains an essential expectation, resilience has become a key differentiator. Additionally, HESTO encourages its supply partners to innovate and continuously improve, fostering supplier relationships that evolve
“DESPITE OUR ACHIEVEMENTS, WE CANNOT AFFORD TO STAND STILL – THAT IS NOT AN OPTION. THE AUTOMOTIVE INDUSTRY IS UNDERGOING ONE OF THE MOST SIGNIFICANT TRANSFORMATIONS I N I T S H I STO RY, A N D O U R A B I L I TY TO REMAIN COMPETITIVE WILL DEPEND ON H O W E F F E C T I V E LY W E C O N T I N U E T O EVO LVE ” – ALEX HOLMES, MANAGING DIRECTOR, HESTO HARNESSES
together in response to changing market conditions. “The strongest supplier relationships are those that continually evolve together,” Holmes says.
EMPOWERING EXCELLENCE WITH INTEGRATED INNOVATION ERP software has significantly improved efficiency in HESTO’s supply chain management. Once fully implemented, the system will enhance planning, inventory management, traceability, and supply chain visibility, leading to better decision-making and operational efficiency. Indeed, access to accurate, realtime information will also strengthen
collaboration between functions, improve responsiveness, and support more effective planning in manufacturing and supply chain operations. “Our ERP transformation remains one of HESTO’s key strategic initiatives. Whilst the programme is still being implemented, it represents far more than a software upgrade; it’s an investment in building a more integrated, agile, and data-driven organisation that is better equipped to support our future growth,” assures Holmes. Ultimately, the ERP transformation is about creating a stronger operational foundation. By improving the way information flows across the Manufacturing Outlook Issue 14 | 7
HESTO HARNESSES AFRICA
organisation, HESTO is positioning itself to make faster, better-informed decisions whilst continuing to deliver the levels of quality, reliability, and service its customers expect. “Whilst innovation is essential for our long-term growth, it does not mean replacing people with machines. Manufacturing wiring harnesses is a skilled, labour-intensive process that values precision and craftsmanship. For us, innovation involves supporting the workforce, refining processes, and preparing for the future,” Holmes resolutely proclaims. Although HESTO continues to invest in specialised manufacturing technologies across its production facilities, one of the company’s greatest areas of focus is developing the skills of its workforce. “The faster we can equip employees with the knowledge and confidence to perform at the
highest standard, the faster we can respond to our customers’ needs without compromising quality. That’s why we’ve invested significantly in training, capability development, and the systems that support continuous learning.” Innovation also means anticipating where the automotive industry is heading. As vehicle technologies evolve, so too must the products HESTO manufactures. “We’re closely monitoring the industry’s transition from traditional copper wiring to aluminium conductors, as well as the growing demand for high-voltage electrical distribution systems required for hybrid and electric vehicles (EVs). These developments present exciting opportunities, and we’re ensuring our technologies, manufacturing capabilities, and people are ready to support the next generation of mobility.
“Ultimately, innovation isn’t a destination; it’s a mindset. It’s about continuously challenging ourselves to improve, adapt, and evolve so we remain a trusted partner to our customers today and well into the future,” states Holmes.
TRANSFORMING HESTO’S HERITAGE INTO A LEGACY Operational excellence and sustainable growth are key priorities for HESTO, but the company’s main focus for the coming year is on its people and the culture shaping its future. “Launched in 2026, OUR HESTO is our cultural transformation initiative that builds on our heritage whilst preparing for our next stage of growth,” impassions Holmes. “We describe our journey as evolving from old HESTO to new HESTO and, ultimately, ‘OUR HESTO’ – building on our strengths whilst
HESTO HARNESSES AFRICA
LEADERSHIP DEVELOPMENT IS NEVER ACCIDENTAL. IT’S ALWAYS INTENTIONAL.
YEARS OF IMPACT
Organisations across South Africa have trusted DYNA to build practical leadership capability where it matters most: on the ground, within teams and across the business. We turn good people into great leaders 021 447 6547 / 0860 820 820 info@dyna-training.co.za www.dyna-training.co.za
fostering a culture that positions us as a people-first, values-led organisation that is investing in its future.” To support this vision, HESTO is rolling out seven core values, including trustworthiness, commitment, teamwork, and staff well-being, which the company wants reflected in how it leads and serves customers. “Our culture is our long-term competitive advantage. Whilst technologies and markets change, an organisation united by shared values and purpose will flourish. If we can unlock the minds and hearts of our employees by year-end, we will have built a strong foundation for our future success. “Despite our achievements, we cannot afford to stand still – that is not an option. The automotive industry is undergoing one of the most significant transformations in its history, and our ability to remain competitive will depend on how
effectively we continue to evolve,” Holmes highlights. HESTO has seen a global shift toward hybrid and EVs and, in SA, the market is becoming increasingly competitive with the growth of vehicle imports from countries like China and India, which creates both challenges and opportunities. As such, this reinforces the need for HESTO to stay agile, innovative, and focused on continuous improvement. “Professionalising our organisation remains an important priority. As we grow, we must continue strengthening our systems, developing our people, and improving the way we operate, whilst never losing sight of the experience, commitment, and ingenuity that have been the foundation of HESTO’s success for many years.
“Remaining competitive means continually improving our quality, efficiency, and cost competitiveness so we continue to deliver value to customers such as Toyota, Ford, and Isuzu. Ultimately, our goal is not simply to respond to change, but to anticipate it and position HESTO to thrive in an increasingly dynamic global automotive industry. “The future will belong to organisations that can combine world-class systems with the passion, dedication, and ingenuity of their people, and that’s exactly the organisation we’re building,” Holmes concludes emphatically.
Tel: 032 347 6700 info@hesto.co.za
www.hesto.com Manufacturing Outlook Issue 14 | 9
Tel: 032 347 6700 info@hesto.co.za www.hesto.com
PRODUCED BY MANUFACTURING OUTLOOK MAGAZINE