FNA Group acquires new State of the Art manufacturing facility in Decatur, Arkansas
The facility is managed by Mr. Chuck Chism, Director of Operations, coming from Black & Decker who joined FNA in January 2009. Under his guidance, this state of the art facility will use Lean Manufacturing Principles to handle a variety of customizable features on the products, including different engines from HONDA®, Briggs & Stratton®, and SUBARU®.
The Decatur operation will primarily focus on the manufacturing of Delco® and SIMPSON® Contractor & Industrial Pressure Washers. The manufacturing strength of the plant will yield significant through-put while maintaining the highest level of quality and increase manufacturing capabilities.
President Gus Alexander noted “This facility represents the next great step for all of our divisions and provides us the opportunity necessary to continue our growth.”
Terms of the sale were not disclosed.
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Background on The FNA Group.
The FNA Group, headquartered in Elk Grove Village (IL) is a world-wide manufacturer and distributor of pressure washer for consumers and business applications. Located at 1825 Greenleaf in a 220,000 Sq Ft. Facility, the Headquarters houses Management, Accounting & Finance, Sales, Operations, and IT Staff. This building is the nerve-center for the four divisions that manufacture parts and finished goods for pressure washers.
The OEM Hose Division manufactures pressure washer hose and other hose products in the Elk Grove Village Facility. Running multiple shifts, the hoses are transformed from raw plastic pellets and nylon braiding into finished hoses used by consumers and professionals across the globe. Hose Extrusion, Fitting, Finishing, and Packaging are all completed in-house (compared to other hose manufacturers who ship the hoses out for many of these steps). OEM ships hoses to many other pressure washer manufacturers, retailers, distributors, and serves customers around the globe.
The FAIP North America Division is split between the Elk Grove Village facility, Siloam Springs (AR) Facility, and Shanghai Facility. FAIP North America is one of the largest manufacturers of Consumer Pressure Washers in the US, and sells many of their products under the names POWERWASHER & TASKMASTER, and also produces significant amounts of machines under Private Label Agreements with Home Depot, Lowe’s, Menards, Sears, Blains Farm & Fleet, and other retailers. Products are designed and managed from the Elk Grove Village Facility & Shipped from the Shanghai Facility directly to the retailer or to the 50,000 Sq. Ft. warehouse in Siloam Springs.
The Consumer Gas Pressure Washer Division is the newest addition. As noted in the press release the acquisition of the new building gave The FNA Group the manufacturing room it needed to build these machines on our own in the US without relying on other pressure washer manufacturers. We acquired the building from Black and Decker as they exited the business, and kept their core manufacturing staff to ensure we achieved the Quality Manufacturing Standards we require. Based in the 250,000 sq. ft. facility in Decatur (AR), products are manufactured under the POWERWASHER & TASKMASTER names, as well as various Private Label names for retailers in the US and Canada. In addition, with our historical relationship with FAIP ITALY we are able to acquire pumps at a significantly lower cost than our competition, and we are able to supply some competitors with our top-quality pumps.
The Simpson & Delco Divisions manufacture bigger, more robust equipment for contractors and professional cleaners. Our Cold- and Hot-Water Pressure Washers have been built under the Simpson name for over 50 years, and under the Delco name for over 25 years.
Why did we expand, when others are contracting?
The vertical integration of the three divisions (high pressure hoses, pumps, & pressure washers) has given us a significant advantage in the market, and our relationships with Retailers allowed us to grow up from just supplying electric-pressure washers to the new level where we can also provide consumer gas-powered pressure washers. When the opportunity to grow into this new product area developed, we did not hesitate. By bringing our vertical integration to this exceptional manufacturing facility we were able to bring our consumer gas-powered pressure washers to market at a price point that is attractive to retailers and consumers alike. In addition our Simpson & Delco Contractor Machines benefit from the upgraded manufacturing and welding equipment.
What does the future hold?
Even with the turbulent economy people are buying pressure washers to clean around their homes and cars. Industrial users are buying more robust equipment with the plan to hold onto them for over 20 years. We serve both markets very well. Our EGV facility is becoming too cramped with hose production and Consumer Service Work, and we are looking for a new headquarters / manufacturing facility in the Chicago-land Area. Most of our Upper Management resides in this area, and we want to continue our growth with the people who have been driving it for the last 7 years. Our Siloam Springs Facility will revert to a larger warehousing operation, and the manufacturing plant in Decatur will expand to serve all of the Consumer and Contractor gas machine production.
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