Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
March 10, 2020 10:53 AM

Diversified Plastics wins PN Excellence Award for employee relations

Bill Bregar
Senior Staff Reporter
Plastics News Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    Brooklyn Park, Minn. — When the employees are the owners, they pull together as a tight-knit team to run as efficiently as possible and grow the company.

    That's what happens at Diversified Plastics Inc., a custom injection molder based in the Minneapolis suburb of Brooklyn Park — winner of the Plastics News Excellence Award for Employee Relations.

    James Dow, who found himself out of work when his employer went bankrupt after what he said was mismanagement, decided to start his career over and bought a small, financially troubled company in 1977 with 13 employees. He was new to plastics, so he relied on the hardworking men and women to build up Diversified Plastics. Today the company has 100 employees in Brooklyn Park and a company the firm bought two years ago, Pacific Plastics Injection Molding in Vista, Calif.

    "Through a lot of hard work and dedication and getting good people, we just kept growing and growing," Dow said. He promoted a family environment and a culture of collaboration.

    So, as Dow got to an age when he was looking to retire, around 2005, offers came in from potential buyers. "People were approaching me all the time wanting to buy the company. They would always assure me that they were going keep all my employees, not to worry. Everybody'll have a job. Well, I wasn't born yesterday. I know better than that. I had 13 people who put their lives into this company, and I wasn't going to have them out in the street," he said.

    Dow turned them all down. Then Chief Financial Officer Roger Vang told him about employee stock ownership plans as a way for Dow to retire and turn Diversified Plastics over to his staff. But the company was too small and it took several years for it to make economic sense, Vang said.

    Finally, in 2011, Dow created the ESOP.

    Workers owning a company can be a powerful motivator. After a computer crash in 2015, employees toiled over several weekends to fix it. Diversified lost no customers.

    Amazingly, the average employee tenure is 12 years. And four of the original employees are still at Diversified Plastics.

    Sales totaled $21 million in fiscal year 2019, ended Oct. 31. Markets include water filtration and medical devices, among other end uses.

    Each year, accountants figure the value of the company. All the ESOP members in the Brooklyn Park factory have a monthly meeting to review the financials and get a company update. They like what they hear: The stock price has gone up 72 percent in last three years.

    Now Vang is working to get Pacific Plastics employees into the ESOP.

    In 2015, Diversified Plastics won the Company of the Year Award for the Minnesota/Dakota Chapter of the ESOP Association.

    Kevin Hogan joined as CEO in 2017 and started a strategic growth initiative for faster, profitable growth. Hogan himself came from an ESOP, so he's well-versed on employees owning the company.

    One major growth initiative is additive manufacturing for direct part production. Diversified Plastics acquired three Carbon additive manufacturing machines and formed a new unit, called the Acceleration Station, to focus on the technology. The molder is no newcomer to 3D printing: Diversified bought a Stratasys printer in 2013 to make prototype injection molds.

    Hogan thinks additive manufacturing could account for one-third of business in five years.

    Related Article
    Apprentices add value to Processor of the Year Intertech Plastics
    i2 Tech wins Sustained Excellence Award
    Teel honored for industry and public service
    PTI Engineered Plastics honored for customer relations
    RECOMMENDED FOR YOU
    Industry sees Biden bioplastics goal as serious signal
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    Biden sets US goal to replace 90% of plastics with biomaterials
    2
    Industry sees Biden bioplastics goal as serious signal
    3
    Report urges treaty to regulate plastics like pharmaceuticals, limit growth
    4
    One injured in explosion at Ineos cumene plant in Texas
    5
    Engineering resin prices close the first quarter with a drop
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified