Local manufacturers see increase in business

Nov 02, 2009 (Danville Register and Bee - McClatchy-Tribune Information Services via COMTEX) -- GT | Quote | Chart | News | PowerRating -- Local manufacturers say they're seeing marginal to substantial growth in business, yet still remain cautious about the economy.

Goodyear Tire & Rubber Co. reported an 11 percent increase in sales in the third quarter from the second quarter, but that's down 15 percent from sales in 2008's third quarter, according to the company's earnings release.

Third quarter operating income still reflects weak industry demand compared to the prior year, the release stated.

Roughly 60 Goodyear workers are back on the job in the Danville plant, said Jo Andrews, communications manager for the Danville plant. The company anticipates adding more employees as business increases.

"Customers want our Danville-built tires. As a result, orders are increasing," Andrews said. "We're glad to see some employees returning as well."

Nestle, which produces Nestle Toll House cookie dough and Buitoni refrigerated pasta, re-entered the marketplace in mid-August with a new batch of products, said factory manager Jan Harris of Nestle Danville.

Four months since the company voluntarily recalled cookie dough to protect consumers, the Nestle Toll House refrigerated cookie dough sales are approaching pre-recall levels, Harris said in an e-mail.

The company also launched a line of new Buitoni Riserva filled-pasta products, which has been successful despite the economy, Harris added.

"Certainly, it's been an unusual year for us here in Danville, but as we look back, it's clear that Nestle people know how to rise to the challenge," Harris said in an e-mail. "I'm very proud of our team here and of the entire Nestle organization for their unwavering support. It means a lot."

Business bounced back in August at Essel Propack, an India-based plastic tubing manufacturer with a factory in Danville, said Sandy Holston, business unit head of Danville.

The fall tends to be a normally heavy season for the Danville facility, which makes tubes for toothpaste and oral care products.

Company staff cut back hours -- about two Sundays a month -- earlier in the year. The inventory supply chain was full April through July as retailers didn't replenish as much stock until knowing how the economy would go.

Now, workers are back to a full workweek and operations are running 24-7, Holston said. The facility is close to being on par with where it was at the start of the year before the slowdown.

"The whole market's been on its way back. Our customers are beginning to fill their pipelines back up again," Holston said. "We're certainly not out of the woods."

Yorktowne Cabinetry in Ringgold calls the recent slight increase in business "marginal at best," operations manager Mike McMacken said.

The cabinet manufacturer normally experiences an increase in business this time of year, he added. As production is tied to the housing industry, the company won't know if the economy has really changed until the spring building and remodeling season.

The good news? For the past couple months, employees have been at a normal workweek, he said.

"I am certainly more optimistic than I was five to six months ago," McMacken said.

Chandler Concrete Co. in Danville, like Yorktowne, said it's too early to tell much about the economy, said Neal Ragsdale, Southside Virginia and North Carolina area sales manager. Business operators don't yet know if growth will be consistent.

The company, a producer of ready-mixed concrete, concrete blocks and other concrete products, is also tied to construction, which usually picks up again in the spring, Ragsdale added.

The company was hit hard during the past 12 months, but sees some "bright spots" in the winter with Virginia Department of Transportation highway projects, industry expansion in Danville and even street improvements in the city, he said.

"I'd say we're steady with a few bright spots," Ragsdale said. "I think we need consumer confidence. People need to feel safe about their jobs, secure and like they want to spend money."

Rick Niesen, plant manager of Cook Composites and Polymers Co. in Chatham, said the company hit its bottom about three months ago.

The manufacturer of unsaturated polyester resin normally produces 65 million pounds per year. So far this year, the company has processed 35 million pounds, he added.

Its resins are used in boat finishes, shoring up mine timbers and other uses.

The company, in operation since 1970, laid off two people and switched employees to a 36-hour workweek this past year. Management took a 10 percent reduction in pay.

Yet, the company has seen an increase in the resin used in recreational vehicles -- a "good sign" that consumers are gaining confidence to spend again, Niesen said. The mine bolt resin also picked up as companies use more coal.

Niesen expects a slow, steady recovery. The company plans to put employees back to a normal workweek at the start of next year.

"It's not going to be overnight," Niesen said.

Amthor International, a family-operated manufacturer of tanks that go in the back of trucks, tells a different story from most manufacturers: employees are busy and even working overtime, marketing director Brian Amthor said.

Domestic sales dropped off in the middle of last year, but exports have dramatically increased, he said. Domestic sales started picking back up this past summer.

Business also picks up during the winter months as the company makes containers that hold heating oil for the backs of trucks, too, Amthor said. Most business is centered about the refined fuels industry.

When business slowed down last year, the company changed strategies to increase sales to retain their employees, Amthor said. Instead of waiting for the phone to ring, marketers got aggressive, got out of the office and knocked on doors.

"We did the best we could to help our employees. It's a buyers' market. It's a role reversal," Amthor said. "You have to be more cautious when the economy is down, but you've got to find ways to keep going."

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