01.01.09
Location: TOTOWA, NJ
Sales: $100 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; Keith Martin, industrial business manager; Gerry Welkley, national sales manager
Plant Location
Totowa, NJ
Processes
Needlepunch, 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, roofing and construction
Sales are nearing the $100 million market for New Jersey-based Precision Custom Coatings as the company’s expansion into nonapparel markets more than offsets slowdowns in the apparel market. “In the past, we were heavily geared toward apparel markets but by the end of 2008, the two sides of our business were split evenly,” said president and CEO Scott Tesser who estimated apparel dropped 20% in 2008 alone. “By the end of this year, we expect that ratio to hit 70:30 geared toward industrial applications.
“Ten years ago, all we did was apparel but we’ve tried to diversify. We’ve done a good job and now we are not vulnerable to just one market.”
Industrial growth received its first boost early last year when PCC’s business in the flame retardant bedding market started to exceed expectations and was amplified by the company’s entry into the dry air filtration market. Growth in these two markets has instigated recent investment at the company. During the past 18 months, the company has added three highloft lines to serve the bedding market and built one needlepunch line and converted an existing line to target filtration applications. The company now operates three highloft and six needlepunch lines—some of which were originally in PCC’s now-closed North East, MD site—all at its Totowa, NJ site. Two thermal bonded lines, formerly in New Jersey, are now in Asia.
Mr. Tesser said it was the company’s existing equipment capabilities combined with its great market potential that facilitated the entry in filtration.“When we were looking at converting the equipment we formerly used for apparel markets, and we found that one of the areas that was easy to target with the technology was dry air filtration. This has become a really important market for us,” Mr. Tesser said. “We have actually been able to bring innovative product into an area that is quite stale.”
Expansion into new markets has been the focus for PCC for the past decade as it has seen more and more of its apparel business— once its sole operation—move to China. PCC currently has three joint venture partnerships in China—one of which centers around nonwoven fabrics—which are all in the apparel market but is already seeing increased competition there as local manufacturers step up performance.
That said, PCC intends to brand beyond apparel in China by expanding its filtration offerings there, most likely with the help of a domestic partner. Add PCC’s existing knowledge of the market combined and the region’s strong demand for HVAC and dust bag filtration markets, and it makes sense to target this market, according to Mr. Tesser
And, new market opportunities are something the company will continue to evaluate. “There is a lot of growth for us within our new businesses. I’m trying to focus on that,” Mr. Tesser concluded.
Sales: $100 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; Keith Martin, industrial business manager; Gerry Welkley, national sales manager
Plant Location
Totowa, NJ
Processes
Needlepunch, 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, roofing and construction
Sales are nearing the $100 million market for New Jersey-based Precision Custom Coatings as the company’s expansion into nonapparel markets more than offsets slowdowns in the apparel market. “In the past, we were heavily geared toward apparel markets but by the end of 2008, the two sides of our business were split evenly,” said president and CEO Scott Tesser who estimated apparel dropped 20% in 2008 alone. “By the end of this year, we expect that ratio to hit 70:30 geared toward industrial applications.
“Ten years ago, all we did was apparel but we’ve tried to diversify. We’ve done a good job and now we are not vulnerable to just one market.”
Industrial growth received its first boost early last year when PCC’s business in the flame retardant bedding market started to exceed expectations and was amplified by the company’s entry into the dry air filtration market. Growth in these two markets has instigated recent investment at the company. During the past 18 months, the company has added three highloft lines to serve the bedding market and built one needlepunch line and converted an existing line to target filtration applications. The company now operates three highloft and six needlepunch lines—some of which were originally in PCC’s now-closed North East, MD site—all at its Totowa, NJ site. Two thermal bonded lines, formerly in New Jersey, are now in Asia.
Mr. Tesser said it was the company’s existing equipment capabilities combined with its great market potential that facilitated the entry in filtration.“When we were looking at converting the equipment we formerly used for apparel markets, and we found that one of the areas that was easy to target with the technology was dry air filtration. This has become a really important market for us,” Mr. Tesser said. “We have actually been able to bring innovative product into an area that is quite stale.”
Expansion into new markets has been the focus for PCC for the past decade as it has seen more and more of its apparel business— once its sole operation—move to China. PCC currently has three joint venture partnerships in China—one of which centers around nonwoven fabrics—which are all in the apparel market but is already seeing increased competition there as local manufacturers step up performance.
That said, PCC intends to brand beyond apparel in China by expanding its filtration offerings there, most likely with the help of a domestic partner. Add PCC’s existing knowledge of the market combined and the region’s strong demand for HVAC and dust bag filtration markets, and it makes sense to target this market, according to Mr. Tesser
And, new market opportunities are something the company will continue to evaluate. “There is a lot of growth for us within our new businesses. I’m trying to focus on that,” Mr. Tesser concluded.