Hartford Business Journal

www.HartfordBusiness.com August 15, 2016 • Hartford Business Journal 3 Precision Punch applies a human touch to its model By Gregory Seay gseay@HartfordBusiness.com J ust because tool, die and mold technology is old doesn't mean providers can't charge a premium for it. That's the message Kevin Gregoire regu- larly delivers to his engineering, sales and marketing teams at Berlin's Precision Punch Corp., who in turn routinely embrace it when they call on U.S. customers. "People are beating each other on price,'' said Gregoire, who is president of the 51-year-old privately held company. "So, Precision Punch is pursuing custom, high-margin products to match its capabilities to its customers' needs.'' Precision Punch operates in the rarefied space of manufacturing known as "capital equipment'' production, which means cus- tomers capitalize on its products to enhance their machinery for churning out products sold to commercial and residential end-users. The company makes specialized implements known as "punches,'' dies and other hard- ware that, in turn, other manufacturers use to make such familiar consumer goods as fishing line, acoustic ceiling tiles and bullets. Precision Punch is among some 3,000 U.S. producers engaged in metal-stamping and fabri- cation, a manufacturing segment that alone gen- erates an estimated $130 billion a year in sales, according to William Gaskins, president of the Precision Metalforming Association in Ohio, of which Precision is one of some 880 members. The metalforming sector is coming off a period of "pretty good business'' the last five years, Gaskins said, driven largely by demand from automakers and U.S. petroleum drillers. However, falling oil prices have ratcheted down that demand of late, he said. Add to that the seasonal slowdown in the automotive industry, as they use the summer to convert tooling to produce 2017 models, "it's gotten to be a tight market,'' Gaskins said. Nevertheless, Gregoire has cast his eyes on widening Precision's customer roster. Its latest acquisition, Eastern Industries, an affiliate that was already housed in a corner of Precision's facility at 304 Christian Lane, makes metal feel- er gage's for a number of customers, including in the aviation sector, where Precision is eager to plant its flag. Eastern's other customers use its gages to measure gaps and other fine tolerances for production of wind-turbine motors, medi- cal devices and guitars, Gregoire said. U.S. airframe maker Boeing Co. and Bloomfield Jake brake maker Jacobs Vehicle Systems are among its customers. As part of his growth plan for Precision Punch, the president said that in the next six years his goal is to move the company from $10 million in annual sales to between $15 million and $16 million. In the specific market Precision Punch serves, it counts between 12 to 13 "signifi- cant'' rivals, Gregoire said. Indeed, he claims that many of those rivals actually are custom- ers, buying Precision's products, then repack- aging and branding them as their own. "We're good at small, difficult work. Tight tolerances. The other companies, not so much,'' he said. However, Precision's greatest challenge in meeting that goal, he said, will be recruiting enough production and engineering talent to it and Eastern. The combined staff numbers 66 now, but aims to reach 72 by year end. But it will take 85-90 workers for Precision to reach its 2022 revenue goal. To build staff, both offer employees $250 bonuses for each hiring refer- ral who lasts at least six months; they can claim another $250 if hires stay beyond one year. During the Great Recession, Precision Punch avoided layoffs by cross-training work- ers to operate as many machines and perform as many machining tasks as possible, said Gregoire, who was a long-time vice president at Precision Punch. He was named president last year, following the death of Robert L. Peterson, who co-founded the company in 1965. Executive pitch With a commoditized product like punch- es, Precision Punch tries to make an impres- sion with its service and direct contact with a customer's key leaders. Often, that means Gregoire himself personally will hit the road two or three days a month with his sales and engineering teams to call on first-time and Continued DESIGN/BUILD SOLUTIONS…ONE SOURCE The company that builds and installs the critical systems in virtually every type of facility is the same company you can rely on to maintain them. For 50 years, our clients have trusted us to manage projects from concept to completion. We are experts in: Design/Build Pre-Construction Services LEED Capabilities 860.871.1111 Toll Free: 800.741.6367 nemsi.com License #'s: E1-104939 • S1-302974 • P1-203519 • F1-10498 • SM1-192 • MC-1134 MECHANICAL • ELECTRICAL • PLUMBING • SHEET METAL • BUILDING AUTOMATION • FACILITIES SERVICES 196 6-2016 196 6-2016 H B J P H O T O S | G R E G O R Y S E A Y A machinist mans his workstation at Berlin's Precision Punch Corp. Precision Punch Corp. President Kevin Gregoire (left) with a sample case of metal punches of varying lengths and diam- eters. At right, some of the smallest punches the company makes.

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