PolyFlex grows through close relationships with customers

Farmington Hills, Mich. — Two stories help explain the culture at PolyFlex Products Inc., according to CEO Mark Kirchmer.

"One example was with Harley-Davidson. Early on, we inherited some work for them that was not running correctly. We said: 'We can try to fix this tool as much as we can, but it's not going to be what you need. ... We're going to design this for you correctly, get it done, and put it in your hands.'

"We were more or less rolling the dice. It was a new account for us," Kirchmer said. There was no guarantee that Harley would pay for the new tooling. But it did, and PolyFlex's decision helped cement what has become a long relationship.

The other example didn't end as well.

"We had a customer that was showing signs that it was not one where we could build a long-term trusting relationship. And it was difficult. It was early in our company's history, and we needed every sale we could get. But we took a stand there, and it turned it out being the best," Kirchmer said.

Company values are still very important at PolyFlex, Kirchmer said. "We talk about them in every company meeting."

Farmington Hills-based PolyFlex makes custom packaging for material handling and automated manufacturing process applications. PolyFlex makes big things used to ship products like complex powertrains, as well as trays for smaller items.

Many of the goods that PolyFlex helps ship are expensive and have to arrive in pristine condition, even when they're shipped overseas. Customers include major automakers.

PolyFlex works closely with customers to determine the best product to ship a part, while also keeping in mind how it will be handled once it gets to the factory. The company makes both one-way and returnable products.

The company uses a wide variety of plastics processes: injection molding, cast and foam polyurethane manufacturing, reaction injection molding, thermoforming and rapid prototyping. Design, engineering and toolmaking are core services.

PolyFlex does injection molding at its headquarters plant in Farmington Hills, which is located in a woodsy business park and looks more like medical office than a factory — if you ignore the truck traffic.

A facility in Goodrich, Mich., does research and developing and tooling. A second Farmington Hills factory processes polyurethane. A Morrison, Tenn., facility does thermoforming and pattern making. The company also has a leased warehouse in León, Mexico.

With USMCA — the new NAFTA — moving forward, PolyFlex is taking a look at a bigger presence in Mexico. The company has sent representatives on trade missions to Mexico and attended trade shows there.

"Several years ago we designed a part that resulted in a tremendous cost savings to our customer. This part is being used in the shipment of transmissions in expendable containers from Mexico to other markets. We formed an alliance with a molder in León to allow us to mold locally and currently provide this part to the transmission plant in Mexico," Kirchmer said.

"We have a 40,000-square-foot facility in León … and have added RIM molding to our facility recently. This type of molding is for rack dunnage applications tied to new model launches.

"Our current need is to find a molding partner with thermoform capability in the León area or in close proximity as we have several customers who are looking for support within Mexico," he said. "We are seeing a need to add capability and localize it within Mexico for products we would produce for use within Mexico."

The PolyFlex team believes that USMCA will result in more content being provided within North America, meaning the market for custom packaging will increase. The company's strategy is to help customers reduce costs associated with freight, so having local manufacturing can be a big help.

"Freight and logistics costs, as well as automating their manufacturing facilities, would be drivers for business," he said.

PolyFlex tries to partner with customers so its engineers understand exactly how parts are handled, including how its packaging interface with automation and robotics.

"So as manufacturing plants [in Mexico] ramp up and modernize, the demand for our engineering expertise will increase," Kirchmer said.

PolyFlex started in 2003 in a 17,000-square-foot building in Livonia, Mich. At that time, it employed 10 people and generated annual sales of less than $1 million.

Kirchmer and his leadership team have years of experience in the returnable packaging market. Sales have grown very rapidly. Today the company employs 110 people and has annual sales of about $35 million.

"Change is one of our seven values, and we are always conscious that we must change in order to meet the needs of the customer and the market," Kirchmer said.

He said the company's No. 1 priority is its employees.

"We will build a strong and viable company through growing our people personally and professionally," he said. "Secondly, we are investing in new technology so that we are the most competitive we can be in the marketplace."

PolyFlex recruits from local universities and community colleges and has an internal focus on training. The company also supports local high school career programs that focus on technical education, science, technology, engineering and math.

Kirchmer is optimistic about the company's future.

"Short term is looking promising as there are many new vehicle launches coming between now and 2023," he said. "Long term, we believe we can continue to grow in new markets and further strengthen our manufacturing capability."

Trying to stay in front of the demands of a growing business is what keeps him up at night.

"Dave [Biggie, the chief operating officer], Ken [Bylo, vice president] and I have moved ourselves into more of a mentoring role at this point. Our next generation of leader is our primary focus," he said. "Building sustainability and scalability so we can handle what is ahead of us.

"Several years ago, we found it was hard for us to find people who came right into our culture. We've been a fast-growing company. And it's always a struggle, you know."

That's why they consider the company culture so important. Putting an emphasis on values will serve PolyFlex well as it continues to grow, Kirchmer said.

"What we do here, technically, is not all that special, right? I mean, the products we make and the technology we use is not all that special. The differentiator for us is that culture that we've built," he said.

PolyFlex recruits from local universities and community colleges and has an internal focus on training. The company also supports local high school career programs that focus on technical education, science, technology, engineering and math.