Flexo-Graphics LLC
12820 W. Glendale Ave., Butler
Industry: Specialty printing, die-cutting and related services
Employees: 40
Printed and adhesive labels seem to be placed on almost every product, from beverage bottles and packaged foods to automotive batteries and aftermarket automotive parts to medical devices and more.
Many of those labels are made by Butler-based Flex-Graphics LLC. The company also produces many other specialty printed products, such as scented bookmarks, a myriad of different stickers, and coupons that are folded, packaged and mounted to consumer products.
“Five or six years ago, we were heavy in industrial (customers) and doing a lot of automotive work,” said Mike McDonough, executive vice president and co-owner of the company. “We’re still doing a lot of automotive, but now we’re in food and beverage, retail products, industrial, automotive, medical and other specialty products.”
The industrial and automotive sectors make up the largest portions of Flexo-Graphics’ business. The company makes labels that are resistant to oil, gas, high and low temperatures, as well as moisture. Its labels are routinely used on products such as spark plugs, automotive batteries, range hoods and electrical components, McDonough said.
Flexo-Graphics also makes some labels used on medical devices, which require precise die cutting. Those precision dies also allow the company to make coupons which are folded with automated equipment, then paired with an adhesive – so they can be attached to retail goods.
“Our customers want more options, and we’ve built our shop to handle that,” McDonough said. “The short run stuff is what we’re good at.”
About 80 percent of the goods made by Flexo-Graphics are adhesive backed. Its non-adhesive products include flexible packaging used for shampoo, hot cocoa and coffee mixes and powder drink mixes.
Flexo-Graphics has about 40 employees. The company has seen significant sales growth in recent years – it had 20 percent growth in 2007 and 2008. Growth slowed to single digits last year, but has returned to an anticipated 15 to 20 percent this year, McDonough said.
Many of Flexo-Graphics’ customers are operating with fewer employees on the design side, which is helping the company capture more work.
“A lot of our customers have less staff, so a lot of work gets pushed to the vendor like us,” McDonough said. “We love that. If we can find a way to fill their need, we’ve partnered with (our customers). When they have new products, new opportunities, we’re part of their team almost to the point of where we’re part of their staff.”
Because the company has grown its sales and added several new printing and die cutting machines, it ran out of room earlier this year. Flexo-Graphics is now moving into a 22,500-square-foot addition. The company previously occupied about 25,000 square feet.
“For the last two to three years we’ve done everything we could do to reduce inventory, but we can only do so much of that,” McDonough said. “We couldn’t add more equipment. With the expansion, we can add a new screen press. And we’re considering our next move in equipment (beyond that).”
The expansion will allow Flexo-Graphics to more fully implement lean manufacturing principles in its facility, McDonough said.
“Because of our space limitations, we could only do some of the things we wanted to do (before),” he said.
The company is also greatly expanding its recycling program, with the intent of recycling 100 percent of its industrial waste. While increasing its recycling program will not save the company money in and of itself, it believes it will help Flexo-Graphics win additional business.
“A lot of our customers are asking about it. Walmart is pushing it and a lot of our products go into there,” McDonough said. “But there’s something altruistic about it. We feel good about it. We (currently) fill a dumpster almost every day.”
