Precision Extrusion spurns China for New York

By Frank Esposito
Senior Staff Reporter

Published: December 13, 2013 1:23 pm ET
Updated: December 13, 2013 1:40 pm ET

Image By: Steve Toloken Michael Badera

Related to this story

Topics Reshoring, Medical, Extrusion, Pipe/Profile/Tubing

After bringing work back from China, medical tubing extruder Precision Extrusion Inc. needs more space at its facility in Glens Falls, N.Y.

The firm had operated a plant in Hangzhou, China, since 2011, but higher labor costs and a large commitment of time and resources led Precision to close the plant, President Michael Badera said in a Dec. 13 phone interview.

“Five years ago, a pretty picture was painted in China,” he said. “But our labor costs have doubled and the government incentives that we expected changed over time.

“There are a lot of smart, hard-working people there, but our knowledge is very specific, so we had to spend a lot of time at the plant,” added Badera, who founded the firm in 1993. “It’s not something you can learn in school.”

Startup costs and expenses at the 58,000-square-foot Chinese plant also were three to four times higher than originally anticipated, he said. So Precision Extrusion joins a growing list of North American firms that say they are re-shoring work from China for a variety of reasons, ranging from labor costs to quality control.

Precision now is turning its focus to adding 7,000 square feet to its 15,000-square-foot site in Glens Falls. Of that 7,000 square feet, 5,000 will be used for clean room work. The firm hopes to break ground in spring 2014 on the project, which represents an investment of more than $1 million.

Precision now employs about 30, but plans to add at least 20 to that number in the next few years.

Tubing made by Precision is used in a variety of medical devices. The firm’s products are based on nylon, thermoplastic polyurethane, polycarbonate and other resins.

Privately held Precision does not disclose its annual sales totals, but Badera said sales growth is in “the high teens” for 2013. That same growth rate could be matched in 2014, he said, due in part to the firm doing more post-extrusion work.

As for the Chinese plant, Precision is debating whether to restart the plant in a year or two or to move equipment from the plant back to Glens Falls. The firm will continue to export products made in the United States to the Asian market.

“There are still opportunities [in China],” Badera said. “But in our case, their level of manufacturing experience wasn’t up to our standards.”


Comments

Precision Extrusion spurns China for New York

By Frank Esposito
Senior Staff Reporter

Published: December 13, 2013 1:23 pm ET
Updated: December 13, 2013 1:40 pm ET

Post Your Comments


Back to story


More stories

Image

VisiPak adds to customer mix, product offerings with Tulox acquisition

March 5, 2015 2:19 pm ET

VisiPak has acquired Tulox Plastics Corp., a maker of clear plastic packaging.    More

Image

Bigger doors, windows gain appeal

March 5, 2015 11:43 am ET

Door and window manufacturers are continuing to super-size product lines to make a grander first impression at main entrances and to expand vista...    More

Image

Mold maker Moldworx building in Arizona to bring in more molding

March 5, 2015 10:13 am ET

Moldworx LLC has begun leasing more space in Gilbert, Ariz., to allow it to grow its injection molding business.    More

Image

Winter blasts ADS sales forecast

March 4, 2015 3:40 pm ET

Net sales forecasted for Advanced Drainage Systems are likely to slip as bad weather grips much of the United States into early March, delaying...    More

Image

Best Places To Work: No. 10, Custom Profile

March 4, 2015 11:04 am ET

At most companies, an employee caught red-handed is in trouble. But not at Custom Profile. The Grand Rapids, Mich., custom extruder encourages employe...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events