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Manufacturer
Shows His Faith in Local Re-Source |
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February
22, 2004
The Muskegon Chronicle
By Dave Alexander
If you think American manufacturing is dead,
you might think again after meeting Paul Kuyt, president
and owner of Re-Source Industries Inc.
Just when the pundits point to the heavy loss of manufacturing
jobs the past three years in West Michigan and throughout
the country and predict continued decline, Kuyt is bullish
on the industrial sector and Muskegon as a place to
do business.
He recently bought a relatively new industrial building
in the city of Muskegon and will increase his company's
work force from 28 to nearly 40. The relocation and
expansion is due to a new contract for the machining
of door handles for a German door lock assembly manufacturer.
"A lot of people assume that manufacturing is dead
in America," Kuyt said. "I disagree."
Re-Source Industries was founded in 1997 and began operations
in Coopersville. From a leased 20,000-square-foot building
in the Coopersville industrial area along I-96, Re-Source
Industries became a high-volume machining operation.
The company has produced up to 5 million parts a year,
depending upon the contracts it receives from customers
in the automotive, furniture, appliance and hardware
sectors.
Working with steel, aluminum and zinc parts, Re-Source
Industries machines pieces already forged, cast or stamped
by other West Michigan companies. Re-Source has a half
dozen main customers, including Port City Metal Products,
Jireh Metal Products, Brillcast Inc. and Ridgeview Industries,
Kuyt said.
Re-Source Industries is a family business for Kuyt and
his wife, Randi, who handles the financial aspects of
the business. He originally formed the company with
his brother, Tim, who is an engineer, but bought him
out a few years ago. Another brother and his father
also work in the business today.
A graduate of Coopersville High School and Grand Rapids
Community College, Kuyt formed Superior Tooling Systems
at age 23 after learning the tool and die trade. After
selling Superior, Kuyt left the business for several
years under a noncompete agreement but re-entered the
business with Re-Source.
Re-Source Industries recently landed a contract with
Brillcast to machine a door handle for German lock-maker
Schlag. The 4.5 million annual order forced Kuyt to
look for a larger plant that provides the opportunity
for further growth.
Typical jobs done by Re-Source Industries are parts
for refrigerators for an Electrolux plant in South Carolina,
door handles for Ford Crown Victorias and plates for
convertible top motors.
Re-Source Industries has averaged a 30 percent annual
growth rate over the past few years when the economy
was in the tank and manufacturing was in retreat. As
a private company, Kuyt said he does not release sales
figures.
The company has taken nearly a year to find the right
location, finalize a deal and make the move. Kuyt said
they looked in the Coopersville area along with northern
Ottawa County, northwest Kent County and Muskegon County.
The best building for Re-Source Industries needs was
the former Burgess-Norton plant at 1485 Getty, Kuyt
said. After working through some of the environmental
issues on the 3-acre site with the owner and the Michigan
Department of Environmental Quality, the deal on the
30,000-square-foot facility was closed in January. Re-Source
made its final move a week ago.
An existing industrial property tax abatement for Burgess-Norton
is in the process of being transferred to Re-Source
Industries. Burgess-Norton, the auto parts manufacturer,
built the $6 million plant in 1996 but left town in
early 2003 after its primary customer took its engine
operations to India.
The city of Muskegon is working on transferring an abatement
on approximately $1 million for the building to the
news owners. The Muskegon City Commission will act on
the request later this month, according to Cathy Brubaker-Clarke,
the city's community development director.
Muskegon Mayor Steve Warmington said he was pleased
to get an operation back into the Burgess-Norton facility.
"This project is an excellent example of people
and organizations working together to close a deal,"
Warmington said. "Re-Source Industries is a great
addition to the city of Muskegon and we are grateful
to each of the parties that worked with us to secure
this project."
Kuyt said that bank financing through Comerica Bank
in Muskegon was critical to making the deal happen.
Re-Source Industries purchased the facility through
Grubb & Ellis-Paramount in Grand Rapids and
received assistance of Muskegon County and Muskegon
Area First, the economic development organization.
"Paul has a real conviction in succeeding with
his business," Brubaker-Clarke said. "He is
really committed to staying in this region."
Besides the new plant, Re-Source Industries will need
another dozen workers for the Schlag door handle contract,
Kuyt said. The company is working through the Families
Services Workforce Development Center to gather applicants
and screen them for the company.
The non-union company pays from $7 to $11 an hour for
production workers and tends to move employees up to
take on more responsibilities. Re-Source Industries
has a co-pay health plan for its workers through Priority
Health.
Production work on machines built in-house is pretty
basic, but the Re-Source Industries also has two Haas
computer numerical-controlled machines that take a higher
level of skill. Setting up the CNC machining equipment
and building the other machines used in the business
are where Re-Source Industries attempts to achieve a
competitive advantage in the market.
Re-Source Industries is now operating two shifts a day,
five days a week. It has its own truck to provide "just
in time" deliveries for its customers. The amount
of inventory at the plant at any given time is minimal.
"You have to think like a big company even when
you are a little company," Kuyt said, adding that
full computerization of the business is key to the company's
success. "Customer focus is the real thing for
us. We have developed a little niche in our industry,
but it sure has kept us busy."
© 2004 Muskegon Chronicle.
Used with permission
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“On
August 11, 2001, we celebrated 50 years in Western Michigan.
You don’t do that without excellent relationships
with everybody.”
Mike Pepper,
General Manager
Howmet Corporation
an Alcoa Business |
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