YOUR BUSINESS AUTHORITY

Springfield, MO

TRANSFER OPTION: The downtown Springfield office for Positronic Industries is expected to get an influx of workers transferred from the Mount Vernon plant.
SBJ photo by Wes Hamilton
TRANSFER OPTION: The downtown Springfield office for Positronic Industries is expected to get an influx of workers transferred from the Mount Vernon plant.

Positronic shifting most of Mount Vernon operations to Springfield

Posted online

Positronic Industries Inc. plans to move the majority of its Mount Vernon operations to its plants in Springfield, according to a Sept. 20 Worker Adjustment and Retraining Notification Act notice filed with the state.

John Gentry, the company’s president and CEO, this morning confirmed the shift of all but the Mount Vernon plant’s molding operations to its Queen City locations at 423 N. Campbell Ave. and 1325 N. Eldon Ave. About 93 employees are affected, he said, and all have the opportunity to transfer to Springfield. Otherwise, they’ll be let go. The action is scheduled to occur around Dec. 1, according to the WARN notice issued to the state Department of Economic Development.

“We needed to consolidate to save some costs,” Gentry said, declining to disclose specific figures. “It’ll mean a few percent to our bottom line.”

The manufacturer of electronic connectors and cable assemblies has watched large portions of its business shift overseas as clients, most notably Honeywell International Inc. (HYSE: HON), move operations to Asia.

“Over the last 15 years, American companies have moved manufacturing technology to Asia. The cost to manufacture in China, for example, is significantly less than in the U.S.,” Gentry said. “We have hunkered down for all these years, still thinking that business was going to come back. We found ourselves with three operations in Missouri, and we weren’t as efficient as we needed to be.

“We’re not able to serve the market in Asia from Missouri.”

Still, about half of Positronic’s revenue comes from North America, he said, noting the Springfield plants are critical.

The company’s defense contractor clients, such as Lockheed Martin Corp (NYSE: LMT), for instance, typically require products made in the United States when selling to their own North American buyers.

“A military manufacturer can’t export product without government approval,” Gentry said. “They want to maintain the ability to manufacture product so our country can defend itself. We don’t want to rely on foreign sources.”

Positronic’s Mount Vernon plant currently employs around 120, less than the 264 staff members in Springfield and 800 around the world. With the change, Gentry said about 30, including temporary workers, would remain in Mount Vernon.

Positronic, which opened its Mount Vernon plant at 601 W. Hayward Drive in 1999, also has operations in Puerto Rico, France, Singapore and India, according to its website. Declining to disclose revenue, Gentry said Positronic grew its global sales by about 7 percent during its fiscal year that ended in August.

Comments

No comments on this story |
Please log in to add your comment
Editors' Pick

From the Ground Up: Culver’s

Springfield’s third Culver’s restaurant is underway at 1400 E. Sunshine St.

Most Read
SBJ Live logo
MOST-WATCHED VIDEOS
Four Tips for Better Product Labels

Not all labels are created equal. Natalie Menzies-Spradlin with Ample Industries gives you four things to think about to make sure your labels are durable, cost effective and meet your product …

Living Quote - Reach for the Stars “My dad encouraged me and told me to continue my education, no matter how hard it is, and now I’m a year into my doctorate degree.” says Melissa Sorah, who works in sales at Youngblood Nissan. …
Networking? Always Follow Up. “I think networking has been key too the core success I’ve had,” says Bruce Nasby, President of Global Advisory Associates. Nasby recommends sending an email specifically detailing who you are, …
Booked - Passion and Perseverance “Being in higher education, we kind of devour books,” says Carol Taylor, President of Evangel University. She recommends Angela Duckworth’s “Grit: The Power of Passion and Perseverance.” …
Learn Something about Everything “Try to learn something about everything and everything about something,” says Larissa Warren, an associate with Husch Blackwell and one of Springfield Business Journal’s Trusted Advisers for …