R.P. Machine Enterprises, Abundant Manufacturing announce new acquisitions
By admin at 27 July, 2008, 7:11 am
Record-high gas prices have caused problems for many consumers and businesses, but the current economic downturn has provided new opportunities for two Statesville manufacturers.
Sister companies R.P. Machine Enterprises and Abundant Manufacturing recently announced new acquisitions within weeks of each another.
The CEO of both companies, Richard Piselli, announced R.P. Machine had purchased Fletcher Machine Co., a production woodworking machine manufacturer in Lexington. Six weeks earlier, Abundant Manufacturing bought Hanover Gear in Hanover, Pa.
“We are in a market that goes against the grain,” CFO Greg Watson explained.
The majority of Abundant’s business involves producing gears for off-highway vehicles, particularly in the mining industry. Meanwhile, part of R.P. Machine’s business is to provide machinery for the windmill industry to make the engines that harness wind energy.
“If you are producing or manufacturing something in the alternative energy line, you are in an area where everyone has growth where everyone else is declining,” Watson said. “Those areas are growing. Wind energy is expected to grow from 2 percent to 20 percent.”
Piselli, the sole owner of R.P. Machine and part-owner of Abundant Manufacturing, said recent acquisitions will allow the company to continue the growth it began in 2005.
Since then, the company has experienced significant growth as it expanded its offering in off-highway gears, began remanufacturing and retrofitting large gear machinery and became a serious player in wind energy products.
By adding R.P. Fletcher, the company has positioned itself to welcome back some of the middle-end furniture companies that moved their operations to Asia and the Middle East.
“Most people don’t realize that the price of fuel and energy is forcing middle-end furniture manufacturers back into U.S. markets and many companies are reconsidering their decision of maintaining facilities in Asia,” Watson said. “Now it is getting much more expensive to go back and forth. It makes more sense.”
According to a news release, the newly named R.P. Fletcher Machine Co. will bring in an additional 25 percent in revenue to R.P Machine Enterprises and an additional 15 percent to the overall company.
The new acquisitions will add 52 employees to R.P. Machine/Abundant Manufacturing’s payroll as well as the machinery, equipment, inventory, trade name and all the existing business.
The Lexington facility where the production is currently housed was not a part of the deal. However, production will remain in Davidson County.
John B. Marek, business retention & expansion coordinator for the Greater Statesville Development Corporation, said R.P. Machine’s recent expansion is a sound investment.
“I think you’re going to see a lot of that manufacturing come back over here,” Marek said.
Marek said Watson and Piselli are an aggressive management team that has been able to take advantage of different business opportunities in the past.
“I think they have put themselves in a position to be on the cutting edge,” Marek said.
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