Hello and welcome. We are thrilled to have with us Mr. Mike Reilly, a luminary in the field of Non-Destructive Evaluation (NDE). With a distinguished career spanning several decades, Mike's journey is a testament to innovation, leadership, and resilience in the NDE industry.
Mike's career took a pivotal turn in the mid-80s while working with Schlumberger Oil & Gas in Farnborough, Hampshire, UK. He later transitioned to Sonatest in Milton Keynes, where he led a Management Buy-out and was appointed CEO within three years. His leadership set the stage for his future success in the NDT field.
Throughout his career, Mike has built and led some of the most prominent companies in the NDT world, including Baugh and Weedon, Ether NDE, and Imaginos NDE Ltd. His experience across these organizations highlights a shared engineering culture driven by innovation and high-performance products.
We are honoured to have Mike with us today to share his wealth of experience and insights. Join us as we delve into the world of NDE with one of its most influential leaders.
Hello Mr. Mike. Greetings of the day. Can you share with our listeners a bit about your background and how you first got involved in the field of non-destructive evaluation (NDE)?
In the mid-80s I was working for Schlumberger Oil & Gas in Farnborough, Hampshire, UK when Sonatest was one of their Group Companies. I was offered a transfer / promotion to Sonatest in Milton Keynes. Just 18 months later, I led a Management Buy-out of the Company and three years later I was appointed CEO…..then my future was set in NDT.
Mr. Mike, you have built the biggest corporations (like Baugh and Weedon, Ether NDE, Imaginos NDE Ltd.) in the NDT world, can you help our audience with your experience across these companies? How was it working with these respective organizations?
The one thing they all have in common is an Engineering Culture with a drive for innovative and high-performance Products. There is nothing more satisfying than developing a concept for a New Product and then seeing all the elements (Electronic Hardware, Firmware and Mechanical Design) come together such that our Customers are delighted with the end result. ETher, Baugh & Weedon, Tecnitest and our sister Companies are all SMEs so we have an informal work environment, but I always emphasise that we have to behave as professionally as any large Public Company and aspire to the highest performance standards. Hopefully, we also get to have some fun along the way!
Given your significant international sales and marketing experience, could you highlight some key differences or challenges you've encountered in selling NDE products and services across different regions, particularly in Asia, the USA/Canada, and Europe?
In the past there were a lot of differences between selling NDT Products in Asia, Europe and USA, for example…….however those differences have very much narrowed in recent years as our Clients have become multi-national themselves and all of them are experiencing their own similar pressures and demands from Clients.
However, it is interesting that there are some Applications like Tube Inspection, for example, where there are big regional and even national differences in the technology deployed; some markets are 90% UT / IRIS while others trust in Eddy Current and RFT. We believe that MFL is due for a big revival as it has many advantages for Carbon Steel Tubes and for finding defects around the Tube Sheet.
As someone who has managed multiple R&D projects, could you discuss the importance of innovation in the NDE industry and share any notable projects or developments you've been involved in?
I have been extremely fortunate to have instigated and managed multiple R & D projects during my NDT career. One of the best examples was when I was at Sonatest and we developed the Company’s first Digital Flaw Detectors in the early 90’s beginning with the Sitescan 130 and Masterscan 330. We then utilized in rapid succession emerging components and technology such as daylight-viewable Displays, virtually indestructible Xenoy (?) Casing and Lithium-ion Batteries along with FPGA Chips to produce UT Flaw Detectors that were world-leading in terms of their performance and reliability. The RapidScan 2 and original UT Wheel Probe were also very exciting to be involved with.
More recently at Baugh & Weedon it was very exciting to develop from a “blank sheet of paper” our own Bond Testing Instrument, the “BondCheck”, while the “LumaFlux 4D” will combine the functions of a White Light Meter, UV Meter, Tangential Field Strength Meter, Pie Gauge and Shot Timer all in one rugged hand-held package: extremely efficient for the Technician and very environmentally-friendly as well. Why build 5 Products when it can all be done in one? This is maybe the most Innovative Product I have ever been involved with in some senses.
At Ether NDE, the recent introduction of the “WeldCheck 3 & AeroCheck 3” and the pending launch of our “ACE” ACFMT Instrument have both been very exciting Projects to originate and manage, along with our MFL and EC Tube Inspection Instrument Range.
As the CEO of Sonatest NDE Plc, what strategies did you implement to grow the business from $2m to $28m in revenue? Were there any particular milestones or initiatives that significantly contributed to the growth?
We grew the business from a Revenue of $2m in 1986 to $28m just over 20 years later. This was achieved through our ceaseless innovation on our core UT Flaw Detectors and the foundation of our own USA Sales Office which saw our North American Revenue grow by 500% in just five years or so; along with founding “Sonatest Asia” with Rodney Wong where we achieved sales growth in ASEAN of 900% in just 3 – 4 years.
Of course, the biggest factor behind our growth was 4 International Acquisitions between June 2000 and May 2005: Balteau NDT, Dakota Instruments, NDT Solutions Ltd. and Harfang in Quebec. Many people have forgotten that Harfang introduced the X-32, the world’s first portable PAUT Instrument! Most of these Companies achieved growth of 400 – 800% from when Sonatest acquired them through to when I left the group in May 2009.
I should say that I was also fortunate to inherit a very strong brand with the bright Yellow Cases; so much so that one of our larger Competitors always referred to Sonatest as “the Yellow Peril”.
How do you approach decision-making in your role as CEO, particularly when faced with tough choices or competing priorities?
I have always worked in private Companies where there are no short-term pressures other than meeting Payroll! This does focus the mind but, seriously, I have always made decisions with a focus on what is required for the business in 3 – 5 years time whether it is an R & D project, a team member recruitment or a marketing investment.
The other principle is to maintain a proper balance between Engineering investments, Marketing and Systems whether those are ERP, Quality or HR and certainly to never neglect any area of the Company: every department and function is critical to making the whole business effective. Of course, correct decision-making has to be supported by “Data” whether that is market research or financial info.
To be the best, you have to have the best people working beside you. Can you discuss your organization’s approach to talent acquisition and development, and how you ensure the organization has the right people in the right roles?
One key recommendation is “always be looking”; NDE is such a specialist area that you have to be opportunistic when great people become available……there are many occasions where I chose to recruit a Team Member 12 – 18 months before the Business truly required them or had the Revenue to support that role fully.
Once onboard, I believe that the keys to success are managing people with fairness and consistency, aligning their targets and goals with the business and agreeing clear Objectives. All of our Pay Reviews are performance-based and in most Companies we run “Profit-Related Pay” Bonus Schemes. In other cases, Staff own Shares in the Business.
With your extensive experience in acquisitions and start-ups, what criteria do you consider when evaluating potential companies for acquisition or partnership?
I have acquired eight companies and started seven others, so this is one of the easier questions! When acquiring an existing Business, the criteria are simple: is there a strong Team, do they have great Products which are high quality and priced competitively, does the company have a strong brand and reputation and, of course, can we (as the Acquirer) grow their Revenue or leverage the Technology.
For a Start-up, it is all about the Business Plan…….and getting “the right people on the bus”. Our “ETher NDE Business Plan” panned out very well in reality except for the small detail that we lost money for 4 years rather than the 2 years we expected…..we under-estimated the “conservatism” of the NDE Business.
You have been working since many years. Could you share one experience/ incident that is really unforgettable?
I have been lucky to visit so many interesting Customer Facilities around the world, and the ECNDT Conference in Berlin 2006 was incredibly positive being the first occasion where the newly-expanded Sonatest Group brought all our Products together for the first time.
However, one little secret that few people know is that the Ether NDE Business Plan was offered to Sonatest in mid-2009; incredibly the Sonatest Directors (VC-dominated and different to those of today, I must emphasise) turned it down……truly remarkable, and still hard to believe to this day!
Too many questions about work. Let's take a break. So, how does life look for you outside of work, Mr. Mike? How do you unwind yourself?
The good news is that I can unwind from work very easily, which might surprise some. I love travelling whether in UK or overseas, love attending Concerts (Bruce Springsteen this week!), Theatre, Art Galleries, Tech-y Exhibits and Events, finding New Restaurants, etc…….and I am a life-long Chelsea FC supporter…….first-half of my life we were often “average” but then we improved!
How does a normal day look like for Mr. Mike Reilly? Do you use any tools/software to streamline your day?
I have tried a few different Systems over the years, but have settled into using a Weekly Task List broken down into Daily Plans. Then add some Medium-Term Actions & Objectives and a basic e-mail Management System (“tagged” / “open”, etc.), and you should be good to go……a Weekly Task List has to be achievable though otherwise it quickly becomes demotivating!
You have been at the helm of various organizations for over a decade. Do you have any leadership mantras that you would like to share with our audience?
This is another simple question for me…….”treat everyone the same / the way you would like to be treated”, “the Customer is always right”, “stay humble and always keep learning” and in NDE “never claim that your product will do something that it can’t”…..and ideally build the most reliable and robust Products in the Industry.
Looking ahead, what do you see as the most exciting opportunities or trends on the horizon for the NDE industry, and how do you envision your role in shaping its future?
Even after 40 years in NDE, I am absolutely convinced that NOW is the most exciting and rewarding time to be involved…….there are the mega-trends such as AI, 3D-printed Components and other New Materials, the emergence of SMR in Nuclear and maybe Fusion as well……all while the tools we have as Product Developers become ever more efficient and ubiquitous while allowing us to offer a Three-Year Warranty on most of our Instruments.
Last few questions, what advice would you offer to aspiring entrepreneurs or professionals looking to make their mark in the NDE field, based on your wealth of experience and insights gained over the years?
Have a Plan but execute it in a logical manner and take one step at a time, do what you are good at and / or what you enjoy, build your own Network and “personal brand”, always take care of your Customers whether internal or external.
And finally, what are your thoughts on OnestopNDT? Do you think our efforts to provide real, authentic and accurate content are helping the industry? Also, do you think our platform is helping the community to connect with like-minded people?
I always enjoy every new Issue of the Newsletter and I think it is tremendous that the OneStop Team is broadening some of the content. NDE is a global business, so the fact that OS NDT is building a concurrent Global Platform and Membership is fantastic.
