Happy To Tell Our Story
PlastiCert is grateful to the Winona Area Chamber of Commerce and the Economic Development Committee for its invitation to speak at their “Journey of an Entrepreneur “ series event last week. Thank you to Bremer Bank for sponsoring the event!
PlastiCert is about to celebrate its 45th year of operation and, like many companies, has a storied past. It was satisfying to showcase the accomplishments of its founder, the period following his passing that almost buried the company, and the rise after its management buyout and that management’s entrepreneurial experience facilitated that turnaround.
PlastiCert is an injection molding service provider that was started by an entrepreneur with tons of experience and extensive industry contacts. The company excelled at making custom electrical connectors, for a variety of industrial OEMs up and down the East Coast. It was highly successful. Then, the menace of OEMs offshoring to China appeared on the horizon. The timing was manageable, and as the founder was executing his succession plan, he passed away unexpectedly. A family member took charge and threw aside the succession plan and tried to restart the old business plan. Fortunately, that also included expanding the company to Minnesota which is where the company is headquartered today. That expansion is about all that worked out for the company, as over the coming years the company saw falling revenues, severely reduced balance sheet and was buffeted by legal issues and a failing economy. PlastiCert became the poster company for the statistic of only 30% of companies surviving the second generation of ownership.
Just as things looked darkest, staring at eviction from their building and closing the doors for good, a management buyout was formulated and accepted.
A new business plan was authored, one focused on servicing customers that needed small and medium volume molding expertise. A molder that specialized in more technically demanding designs requiring insert and overmolding. Part designs that required complex engineered resins and an increase in physical size that had been made prior to now. A plan that developed the concept of Google search as our marketing arm, rather than salespeople cold calling and wandering the countryside. PlastiCert sought input on how to better itself. Technically and organizationally. Soon PlastiCert was awarded the title of World Class Processor by Plastics Technology magazine. Continuing to expand its technical knowledge, it then sought recognition through a new program by the same magazine that compared injection molders from around the country and then around the world. We were queried on not just molding, but operations, human resources management, the entire company’s foundation. Our first entry saw PlastiCert named a Top Shop along with 27 other companies of the many that applied. PlastiCert would go on to be awarded Top Shop designation four years running.
Soon after the new business plan was enacted, new customers were engaged, existing customers brought innovative designs, and revenues started to grow. Once debt was under control, a capital improvement plan was executed, replacing dated equipment and adding space to an increasingly tight floor plan.
Today PlastiCert stands ready to enter its 45th year with newfound vitality and purpose. The current owner, the source of the MBO effort, sits ready to back away and a next generation of family and the same experienced and dedicated management team ready to continue its success story. A story PlastiCert’s founder would have been proud of.
Need an injection molding provider that excels at the small and medium volumes you require? That has technical know how and experience that can help you meet YOUR customers expectations and needs. Give PlastiCert a call, We’ll take you into your next generation and beyond as well!