Large part molder looks to kick start growth
As a manufacturer of large totes and containers for regional markets in the U.S. and Canada, Pacific Injection Molding Ltd. (Langley, B.C.) has reached a critical stage in its development. The company...
As a manufacturer of large totes and containers for regional markets in the U.S. and Canada, Pacific Injection Molding Ltd. (Langley, B.C.) has reached a critical stage in its development. The company’s sales have climbed from $0.5 million in 1993, when Lance and Brent Nadeau purchased the company, then named Nonad Plastics Products, to about $2.5 million currently. The brothers are looking to grow sales to the range of five to seven million dollars over the next three to five years.
“We’ve hit a wall in our growth,” says president Lance Nadeau. “We’d love to purchase new equipment but we’re having trouble getting capital from banks.” Nadeau says the company is investigating taking the company public as a means of raising needed capital. If all goes as planned the company should be listed on the Canadian Venture Exchange by the end of this summer.
Pacific has nine injection molding machines ranging from 150 to 1200 tons of clamping force. One of the machines is a 250 ton vertical press used for structural foam applications. The press allows them to shoot bigger parts without sacrificing floor space.
The company has 20 years experience molding structural foam parts. Current customers include IPL Inc., Scepter Corp. and Orbis, a new customer with a significant market in the U.S. container industry. Pacific also molds a proprietary line of products, including a milk cases.
Pacific employs 22 to 45 people, depending on the season, the busiest time being spring-summer. With low overhead and a low dollar, it is often able to beat its competition on pricing. The advantage is enhanced by shipping north-south, which is cheaper than sending cargo east over the mountains. As a result, the amount of product Pacific exports to the U.S. has grown from 10 percent in 1996 to 40 percent today.
“A lot of our customers are outsourcing to us because we can be more competitive than their own internal operations for certain product lines,” Nadaeu reports.
He says the company specializes in molding large structural parts. One typical example is an electrical junction box it molds for the British Columbia Department of Highways. The part is structural foam molded from polyethylene in a 23 lb. shot.
Management duties are spilt between himself and brother Brent, a trained tool and die maker. The company has been ISO 9002 certified since 1996. With a solid foundation of core expertise and customers Lance Nadeau is hoping to secure the financial resources the company needs to expand. He believes growth of small business provides tangible benefits for society.
“We create jobs. Government and banks should realize this. Many of our employees are 18 to 24 years old and this is their first job.”CPL