Rotomolder makes its name with 'practical premium products'

CUYAHOGA FALLS, OHIO — Rotational molding veterans from the toy-molding hotbed of northeastern Ohio are running Premier O.E.M., a turnkey designer and manufacturer of outdoor recreational products.

Premier is housed in a 37,000-square-foot building in Cuyahoga Falls that was the former site of a building products company — and before that, a Children's Palace toy store. Chief Operating Officer Jim Nagy points out where the decorative archway entrance used to be, beckoning the children of Akron into the early toy chain store emporium.

That toy store connection is ironic, since Nagy and several other executives used to work at Step2 Co. and Little Tikes Co. But Premier turns out toys for adults — like super heavy-duty Orca ice coolers and center consoles and roofs for UTVs, the side-by-side utility terrain vehicles gaining in popularity. Customers include brand names Kawasaki, Honda, Bombardier Recreational Products, Club Car golf carts and Fluid kayaks.

Premier runs four rotomolding machines from Ferry Industries Inc., which is located right down the street.

Premier is more than just a rotomolder. Premier is a producer of what Nagy calls “practical premium products.” But you won't find Premier's name on the items.

“All of our stuff is branded by our customers, so we are the private-label company,” Nagy said. “Premier does not have is own brand, but instead, we're a trade brand. We're actually developing the product for them.”

Premier, which employs 57, handles the design engineering and rotomolding. It outsources injection and blow molded plastic parts and fabricated metal components from other suppliers, and handles final assembly and packaging. Mike Satina, the OEM account manager, has a background in graphic design, and can develop the packaging design with customers. He also had worked as project manager at Step2.

Premier does not release sales figures.

Nagy has 22 years in the rotomolded toy industry, in roles from product designer at Little Tikes and Step2, to manufacturing engineering to vice president of operations at Step2.

The origins of Premier O.E.M came in 2004, when Nagy was at Step2 in Streetsboro, Ohio. On his own time, he tinkered with aftermarket components for Yamaha Motor Co.'s side-by-side UTV, the Rhino.

“Instantly, you got in and you'd go for a ride, and you'd learn some of the shortcomings of the product,” Nagy said.

When the Rhino came out, the interior was pretty bare-bones.

“So when you sat in this thing, you had no place to put your phone, no place to put your drink, things like that.” Nagy said. So the team developed a center console with a cup-holder and other features.

The company made some molds and outsourced the rotational molding and sold them on eBay, 25 or 30 each day.

“We had a little map and we were going to put a pin in for every place we sold it. But after a couple of days, we said, we can't even do this anymore,” Nagy said, with a laugh.

What about the summer, when the sun beats down on the driver and passenger? Nagy looked online and people were jerry-rigging pieces of canvas or plywood. So the company designed a rotomolded, foam-filled roof.

It sold 15 to 20 a day on eBay. Nagy said they got parts back from the molder, put a FedEx label on the package and shipped them out: “Just boom, boom, boom.”

For the winter they made a windshield.

The design team bought a Rhino and developed an aftermarket package for hunters. A safari version. A version for a farmer's work vehicle.

“We took a really new category and did something special,” Nagy said.

Owners of the side-by-sides had already invested in the high-end UTVs, so they had no problem spending a few hundred dollars more to upgrade.

Premier exhibited at a power-sports trade show in 2006.

“The way it got started was, everybody wanted to go for it. So we did a design. And what we were doing is basically talking all of our collective experiences on how to do product development,” Nagy said.

It looked sharp. “We made a vehicle that had all the fenders, storage, roofs and everything that was integrated all together. It looked like it was meant for the vehicle. And a customer could buy this part, later add that part. And it looked like it was from the same company, vs. mix and match of things,” he said.

Nagy and the team from Premier drew on years of experience in the toy industry, building realistic foam models and hosting a professional exhibit.

“It was all very well-thought-out,” he said. “What we found out when we got there was, this is a completely disorganized industry. Anybody that had a welder, or could bend a piece of metal in their garage, was at this show.”

Yamaha officials visited Premier's booth and signed the company to a seven-year contract for design, development and manufacturing.

“They already realized that our products were driving the sales of their vehicle,” Nagy said.

Yamaha gave Premier credibility, which opened more doors. Soon the company was turning out 60 different products from original equipment manufacturers and its own aftermarket items.

Then the recession hit. In 2008, Premier officials started looking for a company that could distribute its products catering to an outdoor lifestyle. It signed a deal with Kolpin Outdoors Inc., a leader in accessories for off-road vehicles.

“They have a very strong brand in the hunting and outdoor category,” Nagy said. “We talked to the CEO there, and in a very short time he picked up the entire line.”

Premier sold the aftermarket business to Kolpin. In 2009, the company began its own molding operations, in two small plants in the Akron area. By 2010, Kolpin acquired the rest of the business.

Nagy left Step2, after 18 years at the toymaker. He led an aggressive plan to grow the new company.

In late 2011, the company moved into its current building. It beefed up the electrical power, added a new gas line, fixed up the restrooms and lunchroom.

Last April, Kolpin — and with it, Premier — was acquired by powersports heavyweight Polaris Industries Inc.

The strategy hasn't changed. Nagy said Premier is becoming well-known as a solid manufacturer that can give advice on new product features.

“We are a trade brand and we are known for making a premium product. If we make a cooler, we're not making a cooler with a blender and a stereo system in it. We're making a damn good, robust cooler that somebody's going to appreciate for a long time,” he said.

Premier focuses on executing, from first developing a product through delivery. Nagy said the company has very good customer service, both to retailers and — through a call center — the final consumer. That contact with end-users helps Premier understand important design features for new products, and give advice to OEMs.

Satina is the project leader with customers.

“When we're working with a customer, like a Kawasaki or a Honda, we're giving them unbelievable service. That's Mike's job,” Nagy said. “They know exactly what they're going to get. We keep them fully informed.”

According to Nagy, Premier is using only CNC-machined molds at its rotomolding operation. The company sources the machined aluminum molds from outside toolmakers, but Nagy said Premier plans to buy CNC machining equipment to make molds in-house in the third quarter of this year.

It's a major investment, but Nagy said machined molds produce parts with a higher level of precision and a cleaner surface, compared to traditional cast aluminum molds. Machined molds also allow for easier modifications and revisions, he said.

To boost its mold efforts, Premier recently hired Mark Swartz as business development and solution specialist. Swartz has experience at rotational mold makers Wheeler Boyce Co., Diversified Molds and Lakeland Mold, which is now called Avantech.

Last year, Jim Mooney, a 24-year rotomolding veteran, joined as director of operations. His background included product development engineering at Little Tikes and Step2. He was plant manager at Step2 before joining Premier.

Premier's management team is made up of Nagy, Mooney, Satina, Swartz and Patrick Tehan, the controller.

As the company grows, Mooney is helping it adopt new technology and train employees. He is certified as a black belt and master black belt at Kent State University's Lean Six Sigma program.

He has experience organizing kaizen events to foster continuous improvement.

Nagy said those people skills are important, especially in the rotomolding industry.

“This company is the people. It only goes to how much they care and want to participate productively,” he said.