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

Intek investing $1 million to expand capacity

July 23, 2014 1:59 pm ET

Custom profile extruder Intek Plastics Inc. has invested more than $1 million to expand its production capacity by 17 percent.    More

Image

RxFiber developing new generation of medical fibers

July 23, 2014 1:38 pm ET

Increased concern about patient safety is creating a business opportunity for biomaterial fibers maker RxFiber LLC.    More

Image

Wisconsin mold maker doubling facility size

July 16, 2014 2:05 pm ET

A Germantown, Wis. toolmaker is planning to more than double the size of its facility.    More

Image

Italian machinery exports up

July 16, 2014 11:40 am ET

The Italian trade association for plastic and rubber processing equipment makers, Assocomaplast, has announced that exports are up by almost 9...    More

Image

Belgian floor covering company building $200 million US plant

July 15, 2014 12:10 pm ET

Belgium-based flooring company Beaulieu International Group will build a manufacturing plant in Cartersville, Ga., giving the business its first U.S. ...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events