Volume I, January 2005

MM2M

Webster’s Dictionary defines the word pliant as “flexible, suitable for varied uses”. The definition is apropos to Pliant Plastics Corp. in Muskegon. The Muskegon-based injection molder has broadened its spectrum of processes over the years and manages to stay profitable even during difficult economic times and under pricing pressure from its tough automotive customers.

“Automotive suppliers are under continued cost-down pressure every year, but Pliant is in this for the long term so we work hard at improving efficiency and reducing the total cost of our products,” said Pliant Plastics General Manager Bill Klungle. “We have operated with lean manufacturing principles for years, but there are always areas that can be improved on to reduce cost or improve quality.”

With demands for annual cost-downs escalating, Pliant Plastics is continuously striving to improve its efficiencies and remain profitable while facing shorter lead-times and just-in-time delivery requirements. The company employs manufacturing cells organized by press type and size. The cells have production responsibility from raw materials to finished parts packaged and ready to ship directly from the workstations. The addition of high-efficiency electric molding presses has decreased overall cycle times while improving product quality and saving money on utility bills.

Regarding the issue of meeting industry standards, Pliant Plastics is certified under ISO 9000 as well as QS-9000, and will be compliant with TS16949 by the end of the year.

The company is active in the Society of Plastic Industries, Society of Plastics Engineers, and regularly benchmarks its business through the Michigan Manufacturing Technology Center (MMTC).

Staying on the competitive edge is difficult in today’s global economy and foreign outsourcing has had an impact on Pliant Plastics’ business.

“We see customer pressure to outsource outside the United States in order to lower tooling and piece price. However, our customers are learning that in the long run, foreign outsourcing isn’t always so cheap,” Klungle said. “If you look at the whole picture, it usually is not cost effective to go overseas for tools or parts of our size and type. Once the customer realizes the real cost of outsourcing to a country like China also includes long distance communications, engineering trips, larger order quantities and slow response, they usually rethink or reverse their decision.”

Of the challenges facing West Michigan manufacturers, attracting skilled workers is not an overwhelming problem for Pliant.

“I believe there are skilled people with great work ethics available in West Michigan,” said Klungle. “The right people are available if you are willing to pay a fair wage and provide a collaborative working environment.”

He believes the educational system is doing the right things to make sure those skilled workers continue to be available. Klungle complimented community college programs and called Ferris State University a “premium for the plastics industry.” Creation of the Muskegon Area Career Tech Center is another positive step for West Michigan.

Klungle is confident that any future expansion for Pliant Plastics will take place in West Michigan. Remaining in this region makes sound business sense as Pliant sources over 98 percent of its goods and services in Michigan and makes it a priority to seek local suppliers for new business. Even though business tax structures are more favorable in other states, Klungle believes that West Michigan will remain an excellent area to build a manufacturing business.

Along with most other business leaders, Klungle is concerned with the escalating cost of health care.

“Health insurance has been increasing faster than the medical inflation rate and most health plans are projecting a double-digit increase again in 2005,” said Klungle. “Many companies are moving toward consumer driven health plans, cost sharing measures, wellness programs and disease management, in an attempt to control health care costs. As a part of the Shape Corp. family of companies, Pliant is involved in a corporate wide self-funded managed health care program. The plan involves a coalition of providers, administrators and employees in a Web-based system of improvement and monitoring. This approach, which encourages preventive actions and rewards healthy life styles, is helping to control corporate health care expenses well below industry norm.”

On global competition, Klungle believes U.S. companies can be competitive if the playing field can be leveled. Removing NAFTA and finding a way of adding the same compliance costs on imported goods and services as are imposed on U.S. business are a couple of ways government could help, said Klungle.

“When you look at the regulatory, environmental and labor controls we are under versus how the Asian competitors can operate, is it really any wonder that they can beat us on price? I don’t believe we should operate here the same way they can in China or Taiwan, but unless there is something in place to level the playing field, it can only hurt us and help them.”

Pliant Plastics has been able to distinguish itself in the highly competitive business of custom injection molding in spite of the obstacles. Klungle envisions that Pliant will double in the next five years.

“With solid customers in automotive, furniture and medical stimulating our growth, and exciting opportunities with construction supply products, we look for substantial growth in the next few years,” said Klungle. “We plan to do that by continuing to set ourselves apart from the crowd of injection molders. Adding in-house rapid prototyping three years ago and expanding our in-house process design/simulation capabilities last year are just two of the ways that we provide added value to the market.”

Most of all, Pliant will remain true to its name, being “flexible and suitable” to its valued customer base.

COPYRIGHT 2004. MIBIZ NETWORK. ALL RIGHTS RESERVED.

This article appeared in the MM2M, Vol. I, January 2005 issue of MiBiz, read by upper management executives in West and Southwest Michigan. Print subscriptions are free to qualified individuals who do business in West and Southwest Michigan. For further information about MiBiz Network, visit www.mibiz.com.