 Last January, struggling plastic manufacturing plant HPG International declared bankruptcy, putting the jobs of its 150 workers in jeopardy. By March of 2009, the plant had ceased operation. Community members feared the 245,000-square-foot plant would remain empty, leaving only its shell to tell the story of Northeastern Pennsylvania’s past manufacturing successes and declines.
However, the day before the plant’s inventory was to be put on the auction block, area businessman Chris Hackett– a 2008 Congressional candidate– submitted a bid for its assets. After announcing the $1.8 million acquisition in May, the plant resumed operations by June, bringing not only jobs, but also a surge of hope during a tough economic landscape.
Hackett, who owns four other successful businesses, used the plant to launch i2M, Innovation 2 Manufacturing, a new venue that produces specialty films used in industrial, recreational, and environmental applications. Located in the Crestwood Industrial Park, Mountaintop, the plant manufactures products used in commercial roofing systems, swimming pools, residential buildings, tunnel lining, and medical grade products.
To staff i2M, Hackett turned to those who knew it best, the workers who spent most of their careers working for HPG International.
“We gave them the opportunity to come back and do what they do best,” Hackett said. “Some of the workers had 20-30 years of experience.”
Hackett estimates that 60-70% of those who worked for HPG International were brought back. Currently, the plant employs approximately 80 people.
Bringing jobs back to the area was a positive development, especially since manufacturing jobs, in particular, have struggled. According to the American Manufacturing Trade Action Coalition, Pennsylvania’s manu acturing industry declined more than 22% from 2000 to 2006, causing a loss of nearly 200,000 jobs.
“I think there were some real positive reactions and interest that someone wanted to take a risk with bringing manufacturing back to Pennsylvania,” Hackett said. “For this economic time, there was appropriate concern in getting the business started. But they did a wonderful job, moving together on our strategic plan, improving the quality of the product.”
When Hackett first purchased the plant, he had no experience with plastics or the manufacturing industry in general. In order to make the business work, Hackett realized deferring to others with more specific knowledge would be the most efficient way to move forward. He noted that it is empowering for people to make decisions, and it is these informed choices that contribute to the success of any business.
“Let people, who know more than you, make decisions to move the organization forward,” he said. “Instead of management trying to solve a problem from a distance, it’s important to have the people with the best skills closest to the problem make the decision.”
Since i2M’s launch in June of 2009, the plant has experienced a successful start, bringing back business that HPG International lost when it closed.
“We were able to pick up the business from the top 10 customers its predecessor had, so we are making inroads in that area,” Hackett said.
Looking at the business that i2M has already re-kindled, Hackett is quick to attribute its success to his workers.
“I think that all businesses are about their team of workers,” he said. “Our success and failure is predicated by the people involved in the organization. I can’t say enough about how solid our team is– they are patient, skilled, and efficient.”
So far, the workers are only running operations on two of the plant’s “calendars”– the printing press-like machines that make the plant’s products. Hackett noted that a third is set to begin by early in the second quarter.
The third machine will bring i2M into new territory, since it will be launching new product lines, upon which Hackett would not expound.
“We’d like to keep that under wraps until we can officially launch them,” he explained.
Even before the new product line launches, i2M has already provided its community with a source of pride during the trying economic times.
“It says clearly that we can compete, and we can compete worldwide, and, with international and domestic providers,” he said.
While economic uncertainty continues– the unemployment rate for December was back up to 8.9%, making the number of available jobs the lowest since 1999– Hackett believes they must treat business ventures proactively. He pointed out that i2M started without stimulus money or government aid to bring the plant back from bankruptcy.
“What will help our country recover is seeing opportunity instead of just risk, and I think we are getting close to that,” he said. |
