Spectrum Plastics forcasts double-digit growth
Tim Nakari | from Spectrum Plastics Group (SPG) is bringing on line more than 13,000 square feet of new clean room space in a doubling of its capacity for the healthcare market. The move represents the latest expansion of the Minneapolis-based company since it was acquired by Spell Capital Partners in 2004. In an interview with PlasticsToday.com, CEO Randy Ahlm, said the owners of Spectrum Plastics Group like the growth prospects in plastics. Annual sales are now about $57 million, and have risen 28% since early 2010. "We're forecasting 10-12% growth in 2010," he says, with growing focus on the medical market, which represents half of sales, and aerospace/defense, which represents one-third. "I think the reason we are growing so fast is that we are so customer-focused," says Ahlm, who became CEO of SPG 18 months ago. He previously had management jobs in other manufacturing sectors and had been consulting to investment groups. "We measure several customer metrics, such as on-time delivery and program execution. We rarely outsource any of our services." Spectrum has developed several interesting capabilities, particularly in the area of quick turn manufacturing or QTM including their new offering of the DynaClass tooling system. The company has rapid prototyping and additive manufacturing capability; builds "rapid" injection molds; and also uses multi -unit-die (M.U.D.) sets with interchangeable inserts that can be used for testing or marketing purposes as well as production parts. Micro molding Earlier this year, SPG added micro molding assets. The company makes its own tooling in Brewster, NY and Ansonia, CT and has liquid silicone rubber (LSR) molding capability as well. It even offers what it calls quick turnaround blow molding with a Magic Extrusion Blow Mold Machine. Ahlm says that no more acquisitions are immediately on the horizon. "We're not actively looking at acquisitions. We look at them opportunistically. If the right opportunity came along and fit into our focus, we would consider it." He says the company's current geographic footprint looks about right, but "we're constantly talking to our customers about it. As our business and our customers grow, that's what would drive any acquisitions." Here's a brief outline of developments to date: 2004: Spell Capital Partners LLC buys Midwest Plastic Components, which is located in the Minneapolis area. 2007: Midwest Plastic Components buys Peerless Injection Molding (Garden, CA) and Dynacept Corp. (Brewster, NY), which specializes in rapid prototype and quick turn manufacturing. 2008: Midwest Plastic Components buys Spectrum Plastics Molding Resources Inc., an injection molder and tool builder in Ansonia, CT. 2008: Midwest Plastic Components changes its name to Spectrum Plastics Group 2008: Spectrum Plastics Group buys Protogenic (Westminster, CO), a prototyping service bureau and low volume casting shop. Spectrum now operates more than 140 injection molding machines, including six micro machines, ranging from 12- to 600-ton clamping force. The most recent acquisition was a 50-ton electric Robosohot purchased this year for the Minneapolis clean room expansion, which will be completed next year. Approximately 7,000 square feet is being added to the existing Class 7 cleanroom in the Minneapolis facility while the expansion in Ansonia will transition approximately 1,900 square feet of ISO Class 8 to 6,000 square feet of ISO Class 8, and an additional 2,000 square feet of ISO Class 7. The total cleanroom space in the two production facilities will be 26,000 square feet. |
