Hartford Business Journal

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Following that deal, Barnes acquired five other companies and formed its Molding Solutions business segment. Molding Solutions has enabled Barnes to expand its end markets to include electronics, packaging and other sectors. The segment also has expanded the company's IP activity, Dempsey said. In 2012 Barnes Group had about 300 patents; today it holds about 1,200. Acquisitions have generally focused on companies in automation, packaging and medical devices, Dempsey said. Medical devices — including parts for inhalers, EpiPens and other products — now represent about 30% of Barnes' industrial segment, and its overall performance has validated the company's strategy, Dempsey said. "The medical business for us has continued to be an area of strength, and in [the third quarter of 2021] our industrial business on a year-over- year basis was up approximately 18% in terms of total sales," Dempsey said. Pressing challenges Barnes' aerospace segment suffered amid a historic downturn in commercial aerospace due to the COVID-19 pandemic. In 2020's third-quarter, Barnes' aerospace segment posted about $72.2 million in sales, a nearly 48% drop from the same period in 2019. The company also announced in July 2020 it was laying off 400 workers amid the downturn. However, conditions are improving. In the third quarter of this year, Barnes Group reported $93.1 million in aerospace sales, almost 30% higher than a year earlier, but still 33% lower than the third quarter of 2019. As that industry crawls back to normalcy, Dempsey said Barnes Group's decision a decade ago to refocus its aerospace manufacturing on narrow-bodied planes — as opposed to wide-bodied aircraft — will put it at a competitive advantage. That's because domestic travel — which often uses narrow-bodied aircraft — appears to be bouncing back faster than international travel, which typically employs wide-bodied planes. There are other challenges. An international shortage of semiconductor chips has affected Barnes' automotive business, which represents about 30% of its industrial segment. During Barnes' third-quarter earnings call, Dempsey attributed about $6 million in lost revenue to chip shortages, as companies that buy automotive parts from Barnes held off on orders while they waited for chips. Michael Ciarmoli, an analyst for investment bank Truist Securities who covers Barnes Group, wrote in a recent investor's note that he expects supply chain and inflationary headwinds to impact the company's industrial sales and margins in the fourth quarter and likely at least through the first half of next year. "The company's industrial segment is currently working through supply chain constrictions in the auto end market, with offsets in other businesses," Ciarmoli wrote. Dempsey said he still sees a lot of opportunity in the automotive sector, and the increasing shift toward electric vehicles creates openings for the company to develop and patent more products, he said. "When you have such a dramatic change from internal combustion engines to electric vehicles, what that's driving is a nice catalyst for us to continue growing the business," Dempsey said. Addressing workforce needs In its effort to maintain a broad staff — ranging from engineers who can develop new products to shop floor workers — Barnes is employing various strategies, Dempsey said. The company has about 50 interns who are mostly studying to become engineers or business development specialists, and about 90 apprentices who are working toward manufacturing jobs. "We see that as an investment in the next generation of skilled individuals and investing in the future," Dempsey said. In addition to those training initiatives, Barnes Group has also AT A GLANCE Company: Barnes Group Industry: Manufacturing Top Executive: Patrick Dempsey, President & CEO HQ: 123 Main St., Bristol Company Website: https://www. barnesgroupinc.com/ Phone Number: 860-583-7070 been taking on more freelancers who work remotely on specific projects, but are not full-time employees. That's allowed Barnes to attract talent from around the world, including people who aren't interested in working for one particular company, Dempsey said. "You have to draw on talent within an ecosystem, and that talent can be from anywhere," Dempsey said. "It's just another example of where Barnes, I think, has taken a very proactive step to move forward as an organization, but also to address this whole area of shortage in talent." As Barnes rolls out its new branding in coming months, Dempsey said the company will continue expanding innovation and IP. But the strategy Barnes Group embarked upon nearly a decade ago appears to have positioned it well for the future, he said. "We're building on a strong foundation," Dempsey said.

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