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

JM Eagle reopens shuttered Colorado plant with 8 PVC lines

April 18, 2014 1:02 pm ET

JM Eagle has reopened its Pueblo, Colo., plant with eight PVC pipe extrusion lines back in operation following an 18-month shutdown.    More

MGS buying N.Y. medical molding plant from Hospira

April 17, 2014 10:19 pm ET

MGS Manufacturing Group is purchasing the Buffalo, N.Y., injection molding facility and related product line of Hospira Inc., effective July 1. Terms ...    More

New Tigre, ADS JV aims to open more doors for Tigre in US

April 16, 2014 12:15 pm ET

A new joint venture between Tigre S.A. Brazil, a leading PVC pipe maker, and Advanced Drainage Systems Inc., the world's largest high-density...    More

Associated Materials Group withdraws plan for initial public offering

April 16, 2014 10:16 am ET

Associated Materials Group Inc. of Cuyahoga Falls, Ohio, a manufacturer and distributor of exterior residential building products in the United...    More

Vi-Lux expands capacity, with room already laid out for future growth

April 15, 2014 2:00 pm ET

Vi-Lux Building Products Inc. just expanded its extrusion capacity by 15 percent — and while work crews were inside the Napanee, Ontario, factor...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

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

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events