DENVER (Feb. 1, 1:15 p.m. ET) — When you double your business in one year, it is tough to say that you can do it again. However, that's exactly what Intertech Plastics Inc. is saying it can do.
With sales doubling to $20 million in 2011, President Noel Ginsburg says he expects the total to rise to $38 million to $40 million by the end of this year.
“Part of it is that we're drawing business back onshore from Asia and Mexico. That's a significant part of it,” Ginsburg said in a Jan. 31 telephone interview.
He said that in his 32 years of business, he's seen business shift to other states or overseas, but he's convinced that there is a new trend to bring business back to the United States.
“The economy is changing,” he said, noting that the costs for production, research and development, and shipping are increasing. There is also more demand for quicker turnaround.
Ginsburg said it has found a niche in that companies are looking “for cradle to grave” service, meaning that Intertech can start with a design, build the product, package it and even ship it.
He also said in the push to build international trade, companies have farmed out a lot of their services, and now they are coming back to the U.S. looking for companies that can it all.
“I was at the consumer electronics show. I met with six potential customers and without exception, they said, were looking for U.S. suppliers. We want to move some work back and we don't know where to start,” he said.
Ginsburg said that injection molding for the electronics, housewares and industrial product segments have been especially strong.
Intertech has been preparing for increased sales. The company spent a $1 million on equipment last year, adding 25 employees in the last quarter. He expects to spend another $1 million this year and add more employees.
Intertech installed a 1,000 ton Husky molding machine at the end 2011 and plans to add another in March and a third in the second half of the year. The company also is improving efficiency – a new chilling system added 40 percent capacity and is reducing energy costs by $56,000 according to Ginsburg. The firm also is adding a 10-ton crane, new LED lighting as well as robotics, labeling and conveyer system.
The company has 110 employees and works in a 120,000 square foot facility. It also has about 80,000 square feet of off-site warehouse space. It is also evaluating its future space needs.
Being able to hire more people is important to Ginsburg, who said that a company core value is community involvement. He and his employees do high school mentoring, help Habitat for Humanity build houses and have raised more than $100,000 in a golf tournament for the United Way the last 10 years.