Cedric Glasper does what Americans are said to have forgotten. He makes things.
Fifteen years ago, as a marketer for a central New Jersey rubber manufacturer, he learned a company his own had coveted was in bankruptcy. “They bought the molding portion of the business,” said Glasper, who was 28 at the time. “I bought the die-cut portion.”
Glasper was on a learning curve when it came to buying a company in bankruptcy. “It”™s a difficult process, because you must settle the debts it incurred, especially if you want to keep a positive relationship with the companies the former owners did business with. The supplier you shaft today can come back to hurt you tomorrow.”
Glasper discovered one of Mechanical Rubber”™s biggest suppliers refused to do business with him unless he gave them a $7,000 retainer because of the debts the former owner had let languish. “We were able to negotiate an agreement; it was definitely a learning experience for me,” he said. “I”™m glad to report we”™re still working amicably together!”
Glasper”™s 52,000-square-foot manufacturing plant sits at the back edge of the village of Warwick, where it”™s been since 1941. And while the business has managed to survive several recessions, “The Great Recession has been the most challenging,” said Glasper. The company, which manufactures gaskets of all shapes and sizes, weather-stripping, automobile and aircraft parts, is doing most of its manufacturing work for the Canadian aerospace industry. “We have two or three clients left here in Orange County,” said Glasper. “Most of our product is going north.”
Glasper has watched as much of his industry”™s business moves to Asia and third world countries to conduct business at a fraction of the cost it would be stateside.
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The decision to outsource has come back to haunt some American companies, says Glasper, particularly in the automobile industry, citing Toyota and Ford as examples of parts made elsewhere that weren”™t up to America”™s industry standards.
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“Much of our manufacturing was outsourced to save money,” said Glasper. “But the problems Toyota is experiencing today as well as the problem Ford had with Goodyear tires on its Explorer model a few years back are examples of how it can hurt a company when it tries to save money but loses quality in the process.”
For Glasper, the auto and aerospace industries”™ business has declined, “but that is a by-product of the recession. The economy is out of balance and we”™re seeing an overall decline in every business sector as a result. And unfortunately, we”™ve moved so much of our industry to third world countries, they don”™t need us anymore.”
Another challenge for Glasper”™s industry is owners aging out and looking to pass on their businesses to the second generation. “Many of these owners encouraged their children to go on to higher education and look for jobs outside the industry,” said Glasper. “As a result, more than half of the children of these company owners have no interest in keeping the family business going. The goal for all manufacturers is to get people engaged. There”™s nothing wrong with being in manufacturing. We don”™t all need to be doctors and lawyers.”
The automotive industry is the biggest user of rubber products in the world, said Glasper, “and we all know how the automobile industry is doing. We”™ve become so smart by outsourcing, we”™ve outsmarted ourselves.” Glasper hopes to see manufacturing become the strong engine for the economy it was before outsourcing came into vogue.
Glasper, who sits on the Orange County Workforce Investment Board, says finding quality workers is problematic as well. “Just as an example, one company had six people lined up for interviews ”“ five failed the drug test. Finding quality workers is a challenge even in today”™s economy.”
Mechanical Rubber has eight full-time and four part-time employees. “We had 19 new companies doing business with us last year, but overall business is down by approximately 40 percent; 2009 was a rollercoaster, and it seems the economy is bouncing along the bottom right now.”
Glasper hopes the tide will turn and industries that have gone offshore will return to American shores. “My company is a niche market, so I”™ve been fortunate, but for many others, they”™ve seen their jobs go overseas. I don”™t know if I”™ll see the tide turn in my lifetime, but hope eventually it will for the sake of future generations.”
