Area manufacturers hold steady amid recession

The nation's manufacturing industry has been hard hit by the global recession, but southwest Missouri manufacturers seem to be forging ahead through the economic hurdles.

The Southwest Area Manufacturers Association held a summit in April for members to share their survival tips and experiences.

"We found that we have companies that are as busy as they can be," said SAMA Executive Director Rita Needham. "We have some that are expanding and acquiring other companies. Then we have some (on) the other end of the gamut that are maybe down 40 (percent) or 50 percent."

Among SAMA's 175 members, Needham said none have closed their doors because of the economy, and some, such as Edmonds Dental Prosthetics, are growing. Edmonds has expanded by acquiring a couple of small companies in the Jonesboro, Ark., area. Also, some segments that are down did well enough in 2008 that they are cushioned from the worst of the downturn.

Manufacturers' experiences vary by market segment and niche.

The food industry is doing well, Needham said. Makers of tractor-trailer suspensions and related items have been struggling, but they were having a tough time even before fall 2008 because of high gas prices and new regulations.

"I talked to some people in transportation (this month), and they said they think they may be starting to see that come back a little," Needham said.

Though it will be a while before the industry bounces back completely, Needham does see some optimism among area manufacturers.

What most SAMA members are doing, she added, is positioning themselves to hit the ground running when the economy swings in the other direction.

"They're doing things like training their staff; they're doing things like buying new equipment because that new equipment can give them a competitive edge," Needham said.

For some manufacturers, the secret to success is occupying the right niche.

Nixa-based Black Widow Custom Bows is one example.

Started in Springfield in 1957 by brothers - and national champion target archers - Norman, Jack and Bob Wilson, the company custom-builds longbows and recurve bows used in traditional archery.

Now headed by partners Roger Fulton, John Clayman and Toby Essick, who purchased the business from Ken Beck almost five years ago, Black Widow maintains a staff of 10 who build 1,000 to 1,200 bows a year. Its unique niche is helping the company ride out the recession.

"We had a slow December and January, but February, March and April have all been normal," Fulton said. "So, it's staying good and strong for us."

At Black Widow, unsold inventory is never a problem.

"We don't build a bow unless we have an order of it," Fulton said.

And exports are a significant portion - about 20 percent - of Black Widow's business, Fulton said.

Popular with hunters in Spain, Italy, Germany and France and marketed online at www.blackwidowbows.com and in the company catalog, Black Widow bows range in price from $960 to about $1,200.

Occupying the right niche can be a lifesaver for a manufacturing firm. But being in Missouri is a benefit in itself, according to a new study by Ball State University.

Ball State has ranked Missouri as one of the top five states in the nation for manufacturing and logistics, along with Utah, Indiana, Kansas and Alabama.

The 2009 Manufacturing and Logistics Report Card grades each of the 50 states in seven functional areas, including human capital, benefits cost, global reach, productivity and innovation, and tax climate.

Missouri's highest grade was an A for its tax climate. Its lowest grades were Cs in manufacturing and human capital.

"Manufacturing continues to be a foundation industry for many states, while the manufacturing supply chain, along with growing international trade, increases the importance of logistics firms in the overall health of our economy," said Michael Hicks, director of Ball State's Center for Business and Economic Research, in a news release.

"The recession has been tough, and especially tough on manufacturing, but as the economy recovers, so too will manufacturing."