Acquisitions diversify products, boost revenue
Not all manufacturers in the state are struggling. American Cord & Webbing Co. is doing so well that it has gone on a modest buying spree, resulting in increased revenue and expanding markets.
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Last week, ACW announced it has acquired New England Narrow Fabrics, a small manufacturer in Pawtucket. It is the company’s second acquisition, the first being the acquisition of West Haven Buckle Co. in 2004. ACW President Mark Krauss said both deals are part of a strategic plan to “increase our product line and expand our customer base,” which in turn has led to increased revenue.
“It’s always nice when you can add another product to the sale,” he said.
Krauss would not disclose any financial information about privately held, Woonsocket-based ACW, nor would he say how many employees the company has, characterizing it only as “medium-sized”.
As for the New England Narrow Fabrics deal, “we approached them,” Krauss said, because acquiring the facility and equipment would increase ACW’s capabilities to manufacture webbing, a closely woven fabric used in applications including straps for sports bags, the backs of baseball hats, harnesses, strips on safety vests, and more. In addition, he said, the company was nearby and had a capable staff.
ACW already manufactures webbing, non-elastic and elastic cords, plastic and metal buckles, and fully assembled products – such as dog collars and leashes – that use its buckles and webbing.
“We sell to 58 different industries,” said Dennis Smith, national sales manager for ACW, which was established in 1917. Most of the company’s customers are domestic and foreign manufacturers, he said.
With the acquisition of West Haven Buckle Co., Krauss said, ACW expanded into the medical industry, which was that company’s niche.
The new deal, he said, is helping ACW expand its presence in the military market. And vertical integration means ACW now can use its control of the entire manufacturing process to spur more innovation and new products.
Krauss said the company was hardly affected by the “Asian Crisis” of the 1990s, when many manufacturers moved their production overseas. “Business remained steady,” he said.
Smith attributes the company’s resiliency to its ability to customize products for its customers. “The growth is a result of discussing with customers what they need and developing the product to meet their need,” he said.
For example, ACW manufactures webbing with built-in rubber strips to prevent slipping, which is helpful in backpack applications, he said. Its looms also can incorporate custom colors or a company’s logo into custom webbing.
“We’re always looking for new markets to break into,” Smith said. He attends trade shows and scans the Internet for ideas. “I read magazines outside the market we’re currently selling to, because you never know.”
“Sometimes you’re spending money and don’t get a return,” Smith added. “But all you need is one new customer, and that could result in another customer.”
ACW opened a warehouse on the West Coast about two years ago, adding to its ability to get products to customers faster. And Smith said he’s noticed more and more customers asking for products “Made in the U.S.A.” – and that is “helping us, too.”
“We’re all facing foreign competition, and we will continue to face foreign competition,” he said. “And even with that, we’ve continued to grow.”
