Americans' increasing interest in at-home hot tubs and spas is bubbling over into business for extruded hose maker Tek-Tube LLC, which is launching a $1.6 million expansion to keep up with new orders.
The Las Vegas-based company is adding two extrusion lines to its existing eight, giving it a 35 percent boost in production capacity. Tek-Tube also expects to increase its staff to 22 employees from 18 once it begins full production in January and is adding another 25,000 square feet to its factory, bringing its manufacturing footprint up to a total of 84,000 square feet.
Milacron Inc. will supply the extrusion lines and auxiliary equipment. It also made the machinery for Tek-Tube's other production lines.
Home spa sales, already at 375,000 in the United States, are predicted to grow by another 15 percent per year for the next five years, said Mike Reyes, vice president of sales, in a Sept. 16 telephone interview. A typical unit uses 480 feet of hose and tubing, with Tek-Tube turning out PVC flexible hoses and reinforced and nonreinforced tubing.
With those kind of numbers, Tek-Tube could potentially tap into another $8 million to $10 million worth of business annually, beyond its existing base of $13 million.
``It's a growing market, and there's no saturation point in site,'' Reyes said.
Baby boomers looking to invest in their homes are opting for home spas, as is an aging population looking for relief from aches and pains.
``We foresee an unbelievable growth factor,'' Reyes said.