Maintaining Balance

As a closely held corporation, PlastiCert does not receive a lot of direct scrutiny regarding its finances and how it spends its money. That being said, customers want to see that we have a capital investment plan, are upgrading and staying current in technology for our injection molding equipment.

In 2021 we added 6,000 sq ft of space. Most of it was for manufacturing and a small portion for a new breakroom.

This summer, we did an upgrade to our office area. New windows, paint, flooring, and cubicles.

One could argue that the office upgrade, and even the new breakroom was “wasted funds” on “brick and mortar” that did not add to our overall manufacturing capability.

I think of the movie Moneyball where one of the players was questioning having to pay for soda in their club house vending machine. The Assistant GM says the General Manager, “Likes to leave the money on the field.” Meaning that the budget is focused on baseball and not the extras.

At PlastiCert, we would argue that there is a fine line between direct and indirect expenditure toward making components for customers. While a nice breakroom or office is not where molding takes place, the attitudes of the people using those spaces DOES contribute to the effort making those products for customers.

There are exceptions, or rather limits to that theory. I have worked at a number of companies, where the Front Lobby and executive office areas were “over the top” in layout and décor. I remember thinking that customers would enter and walk through thinking that the prices they are paying MUST be inflated to accommodate such fine surroundings.

I read recently that economists focus on efficiency and leave equity to others. Their thoughts on efficiency and improvements often result in upward distribution, and in essence, a license for executives to plunder their companies.

As such, we have always been conservative in just how much is spent on indirect, and how much is spent on direct manufacturing capability. Which is why, of our $3 million dollars invested in the last 5 years, upgrading, and adding new equipment, adding manufacturing space, and hiring talent came first. Upgrading the office area came last. Yet it is still important for our people to know they are valued, yet not at a level that customers question said spending.

At PlastiCert, we “leave the money on the field.” Constantly looking to get better at meeting our mission of servicing our customers with plastic molding expertise. But who does not like doing that in an office area that gets upgrades once every 20 years?