Mark Burzynski doesn’t hold back when he talks about the impact his 69-year old, automated assembly equipment manufacturing company has had on the medical device industry.
“I bet our company has helped produce more [medical] needle products than any company in the world,” boasts Burzynski, who is president of Bristol-based Arthur G. Russell Co. (AGR).
The $24-million manufacturer has developed a strong niche over the last three decades building automated, high-volume assembly machines largely for medical device makers, but is now setting its sights on a broader customer base.
In July, AGR spent an undisclosed sum to acquire the operations, inventory and intellectual property of Bodine Automation Technology from Missouri-based Detroit Tool & Engineering. The deal, which brings together two companies with strong Connecticut ties (Bodine was formerly based in Bridgeport), not only beefs up AGR’s research and development capabilities, but gives the company access to customers in the automotive, electrical, and consumer products industries as well.
“Historically, we have been more of a customized machine operation,” Burzynski explained, “and Bodine has offered more standardized machines, so the technologies involved complement each other well.”
That’s a big plus in an industry that Burzynski estimates has 10 to 12 companies worldwide with AGR’s capabilities. “There’s a lot of competition for talent,” he said, noting his company has built custom machines for customers in China, Ireland, Brazil, Mexico, Canada and Singapore. “We are very fortunate to have acquired eight experienced engineers with this recent acquisition.”
The hope is that the additional talent will help reduce turnaround time on key projects, Burzynksi said. Currently, the typical custom machine AGR designs and manufactures costs between $4 million to $5 million to produce and requires more than 10,000 man hours of work. Many AGR-engineered machines can produce up to 1,800 medical needles per minute.
“These are very complex systems,” Burzynski said, “that typically take a year or more to complete.”
It’s also a risky industry, Burzynski admits, and can be problematic for publically-traded companies since quarterly profits are often unpredictable. A recent report by the Association of Manufacturing Technology, which tracks manufacturing technology sales nationwide, found that U.S. orders were down 1.4 percent to $1.9 billion through the first five months of 2014.
One fundamental advantage Burzynski said he sees in its recent acquisition is the expansion of its customer base. Over the past 30 years, AGR has focused almost exclusively on niche medical devices — creating more than 1,000 automatic assembly machines alone for its largest client, which Burzynski declined to identify.
“Bodine works across multiple industries, including automotive, electrical, and consumer products,” Burzynski said, “which allows us to diversify our business model.”
Burzynski said he expects company sales — which currently run around $24 million annually — to increase to $30 million within the next two years. It’s a reasonable goal, he says, based on the approximately 200 new clients the acquisition brings.
With the addition of the new team — and the planned expansion of a second shift — Burzynski is hoping to reduce the average production cycle to 9 months and improve efficiencies. He also said AGR did not receive any state or municipal funds or tax breaks to facilitate the Bodine acquisition. His firm, however, is working closely with CONNSTEP, a fee-for-service nonprofit supported by the state Department of Economic and Community Development (DECD), which helps Connecticut manufacturers improve profitability and create competitive advantages.
“We are working closely with CONNSTEP to better implement lean manufacturing practices and utilize our manufacturing space to find efficiency gains,” Burzynski said of his 87,000-square-foot Bristol facility. He is also hoping to receive small business funding from DECD to help with infrastructure integration, like computer hardware and software, along with new phone systems for the company’s Bristol and Shelton locations.
The biggest challenge his company — as well as the automated assembly industry in general — faces is finding experienced machine technicians and engineers, Burzynski said.
“Over the past 25 years, there has been a loss of apprenticeship opportunities in manufacturing,” he said. “And machine design is really a skill developed through experience.”
To address that challenge and strategically build a future talent pipeline, Burzynski said AGR is looking to establish internships and job training programs in engineering and manufacturing with local universities.
“Not a lot of young people, it seems, want to be part of this industry,” Burzynski said. “They should realize that every project has its unique challenges and opportunities for design creativity.”
