A FAST-growing supply firm is recruiting more staff as it prepares to break the £3m turnover mark.

Propeller, based in Peterlee, County Durham, has seen turnover increase eight-fold, from £35,000 when it was founded in 2001, to an estimated £3m this year.

The company aims to act as a one-stop shop for consumable goods needed by the automotive, manufacturing and engineering sector.

Co-founder Tony Goodwin said: "The pressure on UK-based manufacturers to compete globally increases all the time, so they have to reduce costs in all areas.

"Manufacturers can spend between two and five per cent of turnover on consumables that range from adhesives, bearings and lubricants to power tools and workwear.

"So a £50m turnover company can be spending £2.5m, and a reduction in those costs can make a significant impact."

Mr Goodwin and Carl Brookes set up the firm as Rapid Resources Ltd in Sheffield in 2001 and moved to Peterlee two years ago.

The pair identified a market after their time in cost reduction analysis and industrial distribution.

The business model involves giving clients a free consultation to identify their supply needs.

By providing an integrated supply programme, they claim to be able to cut a company's costs by up to 50 per cent.