01.01.04
Location: Totowa, NJ
Sales: $60 Million
Description: Key Personnel
Peter Longo, chairman and COO; Scott Tesser, president and CEO; Rich Noble, CFO and treasurer; Dan Kamat, vice president, Industrial Textile Division; Shaile Dusaj, director industrial marketing and sales.
Plant Location
Totowa, NJ, Shanghai, China
Processes
Needlepunched, thermal bonded, chemical bonded, heat activated adhesive coatings, specialty finishes ISO Status
ISO 9001:2000 (March 2001)
Major Markets
apparel interlinings, automotive fabrics, medical, fabric softener substrates, furniture and bedding, filtration, vinyl substrates, home furnishings, wipes, hygiene, footwear
Sales continued to grow in both divisions—industrial and apparel—for Precision Custom Coatings, Totowa, NJ, bringing its yearly total to about $65 million, a significant jump from the $60 million reported last year. These results were a pleasant surprise for the company whose yearly business plan predicted a slight drop in apparel sales due to increased Asian competition.
Apparel sales increases were attributed to two factors: the construction of a coating facility in China and better-than-expected sales in North America. The coating facility, located near Shanghai, converts nonwoven products made locally in China as well as by PCC at its Totowa site. As pricing becomes more competitive, more apparel makers are relying on the cost effectiveness of nonwovens in interlinings. This trend has led to a 20% annual sales gain for PCC’s Asian business.
Back in the U.S., sales have increased slightly as the shift among manufacturers toward China is, more or less, complete, according to PCC executives. “We’ve finally bottomed out in the U.S.,” said Scott Tesser, president and CEO. “The people who are still here are here for good. Everybody who is going to move to China has gone already.”
Both segments of PCC’s business are set to get a boost this fall as a new line combining thermal bond, high loft and chemical bond ramps up in Totowa. This line will allow PCC to mix these technologies during production, instead of combining substrates after they are made, for a considerable cost savings. The machine can make heavy-weight substrates up to 12-14 ounces per square yard and should add $25-30 million in annual sales. “We haven’t even scratched the surface yet with what this line can do,” said Dan Kamat, vice president, industrial textile division. “It will save us significant time and money and will make us more competitive.”
In fact, even before the new line began operation, executives are predicting that a second line will soon be needed to handle the demand for these proprietary products.
To better represent its nonwovens business, PCC has renamed this segment Precision Textiles. While operationally the company will remain the same, executives feel that the new name better reflects PCC’s status as a nonwovens producer and shifts the focus from its coatings operation.
Within the next four years, executives expect that industrial sales will equal its apparel business. Already, industrial has grown to 13% of sales this year, compared with 6% last year. This growth has come on the heels of several important projects. For instance, PCC substrates were used in Church & Dwights’s Brillo Scrub ‘n Toss, disposable scrubber product, which won the Visionary Award, recognizing innovative nonwovens-based consumer products, at the Vision Conference in January.
“Customers prefer the way that we respond quickly to their demands,” said Chairman Peter Longo, citing a recent project in Taiwan that took two weeks to complete. “Where it can take larger company months to decide if they want to do a project, we can turn around a request within a week. Our challenge now will be to stay like that as we grow.”
Beyond consumer markets, Precision Textiles is focusing on automotives, home furnishings, wall coverings and antiskid materials. While the new line will help this growth, Precision’s existing lines including three needlepunch lines, two thermal bonding lines and a chemical bonding line all make products for these markets.
“During the past several years, we have focused so much on developmental work,” Mr. Tesser said. “As all of this development activity turns into viable products, our business will continue to expand into new markets.”
Sales: $60 Million
Description: Key Personnel
Peter Longo, chairman and COO; Scott Tesser, president and CEO; Rich Noble, CFO and treasurer; Dan Kamat, vice president, Industrial Textile Division; Shaile Dusaj, director industrial marketing and sales.
Plant Location
Totowa, NJ, Shanghai, China
Processes
Needlepunched, thermal bonded, chemical bonded, heat activated adhesive coatings, specialty finishes ISO Status
ISO 9001:2000 (March 2001)
Major Markets
apparel interlinings, automotive fabrics, medical, fabric softener substrates, furniture and bedding, filtration, vinyl substrates, home furnishings, wipes, hygiene, footwear
Sales continued to grow in both divisions—industrial and apparel—for Precision Custom Coatings, Totowa, NJ, bringing its yearly total to about $65 million, a significant jump from the $60 million reported last year. These results were a pleasant surprise for the company whose yearly business plan predicted a slight drop in apparel sales due to increased Asian competition.
Apparel sales increases were attributed to two factors: the construction of a coating facility in China and better-than-expected sales in North America. The coating facility, located near Shanghai, converts nonwoven products made locally in China as well as by PCC at its Totowa site. As pricing becomes more competitive, more apparel makers are relying on the cost effectiveness of nonwovens in interlinings. This trend has led to a 20% annual sales gain for PCC’s Asian business.
Back in the U.S., sales have increased slightly as the shift among manufacturers toward China is, more or less, complete, according to PCC executives. “We’ve finally bottomed out in the U.S.,” said Scott Tesser, president and CEO. “The people who are still here are here for good. Everybody who is going to move to China has gone already.”
Both segments of PCC’s business are set to get a boost this fall as a new line combining thermal bond, high loft and chemical bond ramps up in Totowa. This line will allow PCC to mix these technologies during production, instead of combining substrates after they are made, for a considerable cost savings. The machine can make heavy-weight substrates up to 12-14 ounces per square yard and should add $25-30 million in annual sales. “We haven’t even scratched the surface yet with what this line can do,” said Dan Kamat, vice president, industrial textile division. “It will save us significant time and money and will make us more competitive.”
In fact, even before the new line began operation, executives are predicting that a second line will soon be needed to handle the demand for these proprietary products.
To better represent its nonwovens business, PCC has renamed this segment Precision Textiles. While operationally the company will remain the same, executives feel that the new name better reflects PCC’s status as a nonwovens producer and shifts the focus from its coatings operation.
Within the next four years, executives expect that industrial sales will equal its apparel business. Already, industrial has grown to 13% of sales this year, compared with 6% last year. This growth has come on the heels of several important projects. For instance, PCC substrates were used in Church & Dwights’s Brillo Scrub ‘n Toss, disposable scrubber product, which won the Visionary Award, recognizing innovative nonwovens-based consumer products, at the Vision Conference in January.
“Customers prefer the way that we respond quickly to their demands,” said Chairman Peter Longo, citing a recent project in Taiwan that took two weeks to complete. “Where it can take larger company months to decide if they want to do a project, we can turn around a request within a week. Our challenge now will be to stay like that as we grow.”
Beyond consumer markets, Precision Textiles is focusing on automotives, home furnishings, wall coverings and antiskid materials. While the new line will help this growth, Precision’s existing lines including three needlepunch lines, two thermal bonding lines and a chemical bonding line all make products for these markets.
“During the past several years, we have focused so much on developmental work,” Mr. Tesser said. “As all of this development activity turns into viable products, our business will continue to expand into new markets.”