Positronic expands, consolidates 3 plants

In a move to improve efficiency, Positronic Industries Inc. expanded one of its Springfield locations and consolidated its three area plants under that facility’s roof.

With a $15 million investment, Positronic increased the footprint of its plant on North Eldon Avenue in the northwest corner of the city. Two other locations – one in a century-old building at 423 N. Campbell Ave. and the other off Interstate 44 in Mount Vernon – are ceasing operations.

The site at 1325 N. Eldon Ave. grew by over 40% to 108,000 square feet in the expansion. The company manufactures high-end electronic connectors used in aerospace, industrial and military applications.

Positronic General Manager Jay Sandidge said injection molding equipment and operations have been moved from the Mount Vernon plant in a strategic process that took place over a span of years. Springfield Business Journal first reported on the planned shift in October 2017. It’s a part of the consolidation that Project Manager Ron Griffin said will be complete by mid-August.

Sandidge said the company has chosen to decommission, rather than move, plating equipment now located at its Campbell Avenue building. The new plating line was the chief expense of the expansion, Sandidge said.

“That was really the only thing we didn’t move,” he said. “We have all brand-new plating equipment at the new facility.”

Located downtown, the 63,000-square-foot Campbell facility, bearing its retro logo of a script letter “P” surrounded by plus signs resembling stars, was a more visible presence to Springfieldians than the Eldon site. Some plating machines there are still in use for the time being, and a handful of employees remain as well, Sandidge said. Those workers will soon be shifting to the Eldon building. The shift will save overhead, including utilities, maintenance and annual taxes, Sandidge said. The 43,000-square-foot Mount Vernon building, constructed in 1999 on an 8-acre site, is already up for sale and listed on LoopNet at $2.5 million by Reece Commercial Real Estate. The Campbell Street building, constructed in 1895, will soon be listed, too.

It’s an exciting time, Sandidge said, recalling the plant’s July 20 ribbon-cutting, which was attended by leaders of 25 sister corporations within Amphenol Corp. (NYSE: APH), the Fortune 500 company that acquired Positronic in 2021. Amphenol CEO R. Adam Norwitt joined Sandidge, Springfield Mayor Ken McClure and others in wielding the outsized scissors to cut the ribbon before an audience of Springfield Area Chamber of Commerce ambassadors and Positronic employees.

But for many, the consolidation is bittersweet. Positronic’s blog quoted Sam Henry, Mount Vernon site manager, as he lamented his site’s closure, though he acknowledged the value of having everyone under one roof.

“I remember working on the Mount Vernon building design many years ago, and there is a small part of me that hates to see that chapter come to an end,” he said.

The Mount Vernon plant is 30 miles from the Eldon facility, and Sandidge said most workers have decided to make the commute. In 2022, the Mount Vernon plant had 300 employees, according to SBJ list research.

“We did offer incentives – like compensation for additional gas for a period of time to ease the transition – and most people are taking advantage of it. But some people couldn’t justify it,” he said.

Sandidge said roughly 90% of workers have chosen to remain with the company at the expanded Springfield plant.

According to SBJ list research, in 2022, Positronic was the area’s seventh-largest manufacturing company. Its three facilities at the time had 750 employees.

Streamlining operations
The new plant includes a new plating shop with two automated lines for gold and hardware processes, a designated temperature-controlled area for the injection molding department and a wastewater treatment system that includes water recycling, according to a news release from the company.

The addition of automation has not resulted in the elimination of workers, Griffin noted.

“We’re moving people around,” he said. “Like everyone else, we’re always looking for people.”

He said former Mount Vernon workers are working on their familiar equipment, but the surroundings are very different. Temperatures in the expanded plant are a steady 68 degrees F, but in Mount Vernon, temperatures regularly climbed to 110 F. The new plant is also brightly lit.

As for the new plating line, Sandidge said the equipment upgrades mean fewer maintenance issues, but they are also the source of the biggest cost-savings for the company.

“In our industry, a lot of gold plating has to do with minimums. In that situation, if you have equipment that is not too precise, you have to overshoot,” Sandidge said. “This new equipment, because it’s very modern, is much more precise. That alone is going to save us a lot of money.”

Sandidge estimates it will save up to 15% in annual gold usage, which equates to a savings of hundreds of thousands of dollars.

It’s a line item that far exceeds all others in savings potential, he said.

Positronic’s products
Connecticut-based Amphenol operates worldwide, designing, manufacturing and marketing electric and fiber optic connectors and interconnect systems. The company reported revenue of $12.6 billion in 2022, according to its income statement.

Positronic was privately held from its founding in 1966 until its acquisition two years ago. Its Springfield headquarters is also its global headquarters, with a European headquarters in the south of France in the city of Auch and an Asian regional headquarters in Singapore. The three headquarters offer each other duplication of capabilities to assure customers that the manufacturer would remain operational if, for instance, a tornado were to strike the Springfield plant or a tsunami hit the Singapore company, Sandidge said.

Sandidge said Positronic manufactures electronic connectors, similar to an outlet in a house that one might plug a toaster into – only more specialized.

“Our product is much more expensive and is designed to last 30, 40 or 50 years in situations where failure’s not an option,” Sandidge said.

Positronic connectors are known for being reliable, high-performance products, Sandidge said.

“We sell a lot into industries where quality and longevity are critical – like airplanes, military equipment or things that are deployed in harsh environments like deserts,” he said. “Anything that goes on a piece of equipment like that, where people’s lives are at stake and the life cycle’s very long – those are the kinds of applications and areas where we excel and you typically would find our products.”

Customers include defense contractors, like Lockheed Martin Corp. (NYSE: LMT) and Raytheon Technologies (NYSE: RTX), and information technology companies like Meta Platforms Inc. (Nasdaq: META), parent company of Facebook and Instagram.

“We provide a lot of products for Meta data centers,” Sandidge said.

While data centers are not mission-critical, life-or-death situations like an airplane might be, equipment must be very high-performing to withstand heat without failure.

Sandidge said Positronic products are unique in the area.

“In Springfield, we have more of a service-based economy,” he said. “Manufacturing is really not that common, and this kind of manufacturing is even less common.”

Dean Thompson, executive director for regionalism and economic development for the Springfield chamber, said Positronic has been an outstanding Springfield community partner for over half a century.

“They are a local success story that has grown to be a global leader in the power and signal connector industry,” Thompson said. “We celebrate Positronic’s success as they continue to innovate and grow in Springfield.”

Speaking of growth, Sandidge said the Eldon Avenue site has more land available for further expansion – something he anticipates in the next five years based on current levels of growth. No specific plans are yet in place.