Plastics News Show Daily - April 3, 2012 - (Page 47)

PLASTICS NEWS, April 3, 2012 47 Pent-up demand driving new investment By Bill Bregar PLASTICS NEWS STAFF Plastics News photo by Dave Burdett Banks, looking for customers, ready to free up access to loans Loans were hard to get during the Great Recession, but now lenders are freeing up capital, said an official of EverBank Commercial Finance Inc. (Booth 9331). Strong banks have taken over ones that failed, and the financial sector has cleaned up its balance sheet, said Samuel Smith III, managing director of plastics and packaging. “Banks and financial institutions understand that in order to grow, they need to put on assets, which means they need to make loans,” Smith said. “They stalled on making loans during the tough period. And with the healthier balance sheet, healthier portfolio, they’re looking to grow. Certainly our bank is looking to grow, and most of our competition is, as well.” Smith, who has 28 years of experience in equipment financing, thinks access to capital will continue to ease this year. Pent-up demand after the recession has driven much of the manufacturing investment in new plants and equipment, he said. EverBank’s plastics and pack- aging business unit is in Hampton, N.H. Smith reviewed how the recession and home foreclosures led to a huge pullback in credit. Now the economy is recovering, although unemployment remains high and business leaders remain unsure of the country’s direction, he said. “I think the presidential election causes certain decisions to be stalled. There’s uncertainty that exists in both the political and business climate,” Smith said. With historically low interest rates, “it continues to be a great time to consider refinancing or term financing, fixed-rated financing, if it makes sense for your firm,” he said at the Plastics News Executive Forum, held earlier this year in Tampa, Fla. He recommends that processors consider nontraditional lending sources, such as obtaining financing using molds for proprietary products as collateral, or financing so-called progress payments made on equipment under construction. Sale/lease-back plans can make sense Samuel Smith: for refinancing “Banks and financial debt. institutions underEven though stand that in order to credit is easier to grow ... they need to get, Smith said make loans.” it’s important to be well-prepared. “All of us went through difficult times. The banks went through difficult times, and so did the customers. What we believe is really them in a positive manner, as if important is addressing … those you’ve taken charge, you underred flags or those irregularities stand the problem. You know that occurred in the company, why it was an issue, and here’s and the trends — addressing what you’ve done to address it.” Wise buys Battenfelds PLASTICS NEWS REPORT ORLANDO, FLA. — Custom molder Wise Plastics Technologies Inc. has purchased three Wittmann Battenfeld Inc. (Booth 2843) injection presses as part of a multimillion-dollar expansion of its factory in St. Charles, Ill. The TM 550/5100 ServoPower presses, each with a clamping force of 550 tons, are scheduled for delivery this month. With the three new machines, Wise now has 57 injection molding machines, with clamping forces ranging from 35-1,100 tons. Wise Plastics has invested $3.5 million in the past several months to add injection presses, custom automation equipment and four bulk storage silos. The investment is mainly to support several new, long-term projects awarded to Wise Plastics in the fourth quarter of 2011. The molder has a diversified customer base, with no single segment accounting for more than 20 percent of total sales. Major markets include medical, lighting/electronics, recreational/sporting goods and computers/business equipment. Torrington, Conn.-based Wittmann Battenfeld Inc. has been a supplier to Wise Plastics since 2000 for various types of auxiliary equipment. This marks the first time the machinery company has supplied injection molding machines to Wise.  http://www.entekextruders.com/casehistories http://www.entekextruders.com

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Plastics News Show Daily - April 3, 2012

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