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An
interview with Peter Crisci, President and CEO of Acromatic Plastics and
Crisci Tool & Die, Inc. in Leominster, MA
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1) |
What is your company niche and what does your company do that is
notable,
unique or different?
 I’ve
been in the tool & die business for 40 years – started with my dad.
I decided in 1973 that I wanted to be in the injection molding
business and the tool & die business both – I wanted to offer the
complete package. At that time I was 27 or 28 when I started
Acromatic in 1973. A lot of people told me I’d lose a lot of my
tool & die accounts, and yes It happened, but I was doing a lot of
proprietary tooling, too, and it was the right choice. You know,
Portugal came up as a competitor in the late 1970’s. Toy companies
especially, among other sectors, went to Portugal for tooling. So
we started losing the industry that long ago. I saw that happening
and knew I’d have to do something about it if I was going to
survive.
Today I have about 95% of my tooling built in Portugal and China.
One of the things we had to do is supply customers’ tools at as
good a level of quality as we could build them here
and we had to guarantee them,
too. There was no way we could continue to be
 successful
and grow our company unless we embraced the changes in the
industry.
Back then, Portugal didn’t
build tools to the quality we have here in the U.S., but today they
do. China doesn’t have that ability today – not yet. They can’t
yet handle the plus or minus one tolerances and really hit the
quality we can hit. Most of us are dealing through brokers and
it’s been the brokers that really build the tools for us. So to
combat that quality thing, we still have our own
dedicated tool and die shop,
Crisci Tool & Die.
Crisci Tool & Die allows us to make the adjustments that have to be
made on the offshore built tooling and we do that to ensure the
customers get what they want at offshore prices. So the tool & die
shop is such a necessity. A lot of molding shops don’t have that
luxury of having a dedicated tool & die shop – they have to deal
with outside sources and that can send tooling costs even higher.
That’s an important niche that we have. Globalization has really
put us in a different arena, no question, but we’re using it to our
advantage so we can service our customers.
I’ve also introduced something that is called Profit Engineering.
Profit Engineering is nothing more than our
 customers
taking advantage of our expertise in custom injection molding and
product development by letting us assist them with those
functions. We show them where the quality can be engineered in and
the excess costs can be engineered out. The challenges facing
companies today are exactly that: how to improve product quality
and performance while simultaneously reducing cost. These
competitive pressures come from both domestic and overseas
markets. Constant innovation and performance improvement programs
are becoming the first line of defense for companies that want to
remain competitive, and they are looking to their suppliers more
and more to provide solutions. We have worked with many of our
customers helping them convert some of their metal designs to
plastic, which resulted in very significant cost savings while
improving quality and reducing the number of parts. For example,
we had a situation where the customer’s original design had 54
purchased parts. By working with us at the conceptual stage and
taking advantage of our insert molding expertise, they were able to
consolidate everything into a single purchased part, which greatly
reduced the burden on their purchasing department. This is a
perfect example of Profit Engineering.
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2)
3)
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When and how did you get into the industry, what attracted you to
it?
It goes back to my
father. The plastics industry was really introduced into this
country in the 1930’s and where did it come first? Leominster,
MA. My dad, in the1940’s, became a tool & die maker working in
Leominster. By the time I was 8 or 9 years old he was bringing me
into the shop and showing me what he does. He told me, “Pete, I
want you to be an engineer.” I agreed wholeheartedly because I
loved what I saw and was excited about doing what he did. He
eventually started his own tool & die shop, Advance Tool & Die, in
Leominster, MA, 1957; I graduated college in 1963 and when I got
out of college my father told his partner he wanted me to go into
business with them. The partner didn’t like that idea and wanted
to buy my dad out. Well the partner eventually did buy my dad out
and my dad and I went into business together and started Crisci
Tool & Die in 1964.
 I
have started and sold several other companies in my lifetime. I
think I was born with a fire inside me because I was always
thinking of companies to start and I loved doing it. For example,
I had a container business I started in 1978 that I built up to
about $8 million in sales and someone thought it was a pretty good
thing and offered to buy it from me. I wish I hadn’t sold it now,
but what can you do? That company probably would have been worth
many more millions today.
Relate a notable "best time" for your company.
If I had to pick one best time that I’m proudest of it’s now, where
I’ve built this new facility we’re in. With 110,000 square feet I
can do anything with my business and there’s room to grow another
110,000 square feet beyond that. Plus I’ve got another 6.5 acres
of land right next to me that I’d like to build a separate medical
division on. By the time I acquire that land and build the
building, it will probably be two or three years away. I have
right of first refusal on that land, so more than likely I will end
up with it. I’m a young 62 years old and don’t see myself ever
retiring. I enjoy what I do too much. |
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4) |
Similarly, relate notable challenges that your company has
overcome.
The biggest challenge we have overcome is the banking crisis in the
1990’s. There were so many companies that went out of business and
it really stumped the growth of business throughout New England for
years. Just surviving for those 6 years was something that made me
proud. The other time was in the early 1970’s when there was an
oil crisis and it shot materials prices up sky high. Today, yes,
prices are going up on materials, but at least you can still buy
the materials. Back then you couldn’t.
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5)
6)
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When you are working on projects with your customers, what aspects
would you like them
to
better recognize?
 Get
your tooling supplier into the design aspect of the part early
enough that you gain the benefit of their expertise which can save
money before too much time is spent on design. Also, if customers
share what their goals are for pricing on a project, that would be
a great benefit to both us and them. So many times they’ll design
a part and the wall thicknesses are too thick – 50 – 60% of the
cost of the part is materials! If you can find a way to reduce
wall thicknesses and make other improvements you save money. My
machine rates have stayed the same over the years. How? Through
continuous improvement. That’s what it’s all about. Any time you
can take your processes and make them better, and that goes for
better designs by consulting with your tooling supplier, you’re
going to save money and increase profits.
List newly acquired technology, machinery or
key personnel (in last
year).
My equipment is always state of the
art so we are continually updating it. Most recently I brought in
three 100-ton presses and also purchased four new 3-axis robots to
replace four others we had that were pneumatic. Also, the new
plant I’m in now is fully air conditioned, where the old plant
wasn’t, so we now have a fully-integrated chiller system and can
hook that up to any machine. I can run the chiller system
year-round and won’t have the problems with condensation and rust
that you can get, especially during the summer months.
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7)
8) |
Has your company recently expanded? Plans to expand or form
partnerships/alliances?
We moved into our new
facility about a month ago. I’m also looking at one acquisition
right now and there possibly could be a merger as well. Really the
way to go today is acquisition. If they’ve got good clientele and
profitability, then I’m interested in the sale. I’m looking at
acquisitions from the sales angle only, not assets.
Are you involved in any industry organizations or educational
programs related
to the trade?
For years I was a
member of the SPE and the SPI. I participated on both boards. I
did that for probably 25 years and I’m sorry to say that now I don’t
have the time. I was also on the board of directors for the
Leominster Chamber of Commerce. I think involvement in a trade
organization is a great stepping stone for younger guys (up till
you’re about 50 years old) because it’s great for networking and
establishing yourself within the community.
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9)
10)
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What do you think about changes occurring in the industry due to
globalization? How has it
affected the way you do business?
 It’s
affected the business from the standpoint that you’ve got to have
continuous improvement –
better equipment, better personnel. This is true today more than
ever. You’ve also got to embrace the globalization. China, in ten
years, will be building molds as well as we are and India’s right
behind them. We should be doing something to protect the jobs
here, too. We’re losing a lot of good tool shops that within five
years or so we’re going to be sorry we lost. In 10 or 15 years
from now, I’m telling you, China prices will be almost what we
would charge. There’s going to be a need for tool & die operations
here, too. We used to have
about 70 tool & die shops in Leominster, where plastics started,
and what do we have today? Maybe 10. A lot has changed over 25
years.
What will the industry look like in 3 to 5 years?
I think the industry is definitely going to improve because we are
getting more intelligent in dealing with globalization. People do
understand today what they have to do to be successful. If they
don’t they’re going to be in trouble.
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Additional Background Information |
Number of years in business:
Crisci Tool & Die – 40 years
Acromatic Plastics – 31 years
Current number of employees: 80 (We
have had a high of 120, but automation and efficiencies have
downsized the company. As the industry grows there will be room
for more employees again. I hope by this time next year we’ll have
doubled in sales in acquisitions and growth and in three to five
years we’ll be in the $20-$25 million range.)
Current square footage (each
location): 110,000 square
feet total. Of that total, 8,000 square feet is Crisci Tool & Die;
Value Added room is 5,000 sq ft.; Manufacturing (molding/assembly)
area is approx. 40,000 square feet; and the balance is
warehousing.
Additional locations:
None at this time, however the company does have alliances in
Portugal and China.
Website:
www.acromaticplastics.com
Types of tools built and/or run:
Majority is Class 101, high precision tools. Multi-action
injection
and insert molding. Insert molding primarily for auto and medical
industries.
Industries served:
Auto, medical, industrial products and consumer
Contact
Information:
Acromatic
Plastics & Crisci Tool & Die, Inc.
32 Jungle Road,
Leominster,
Massachusetts 01453 USA
Tel: 978-537-4102
Fax: 978-537-0952
info@acromaticplastics.com |
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