Oak Engineered Products Inc. is no longer a manufacturer, but will continue to sell its product line.
``We found a significant fixed overhead to run our facility in Oakdale, so we've elected to outsource our manufacturing,'' said Richard Martz, president of the Oakdale, Pa.-based company, in an April 16 telephone interview.
The firm now will rely on Penn North Plastics Inc. of Reno, Pa., to manufacture most of its lines. Oak Engineered will continue to sell its storage and small patio- table product lines.
Martz said that the company sold most of its machinery at an April 3 auction. He said OEP had 35 employees last summer. However, the company's staff is now down to two people, he said.
He said OEP is keeping its molds. The company also purchases its own resin and packaging materials, and works with Penn North to manufacture its products.
``We have a good working relationship,'' Martz said.
OEP uses sales representatives to market its products to customers such as Big Lots and Family Dollar.
Martz said there are plenty of good molding shops that have capacity, so it did not make sense for OEP to continue its own manufacturing.
Oak Engineered Products was launched in September 2005 when Martz purchased some of the product molds that had been used by Stylette Inc. Martz was quite familiar with the molds, as past president of Stylette, a company that shut down after it was flooded in September 2004.
In 2005, Doskocil Manufacturing Co. Inc. of Arlington, Texas, bought some of the Stylette product lines. Martz formed OEP by acquiring product lines from Doskocil and from Alco Industries Inc., the parent of Stylette, and outsourcing production.
He then leased space in the old building in Oakdale.
``Essentially the volume of anticipated business wasn't there. Our sales volume didn't materialize, so we had a smaller base to spread out our basics — lease, payroll, utilities,'' Martz said.
``It soon became apparent what we had to do,'' he said.
Now, the plan, according to Martz, is to build on what is left.