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WHEN Dana Hanson founded Processing Technologies International (PTi) with Jon Roberts in 1988, he was only 28 years old — inspiring competitors to nickname his team "the kids from Chicago." The last 30 years have brought their share of challenges, but those "kids" have weathered them all to develop PTi into a global leader in high-performance sheet extrusion machinery, serving more than 20 countries. Hanson discussed his career with PMM correspondent Lisa Jo Lupo.
What brought you to
the plastics industry and why did you establish PTi?
Hanson: How does
anyone take a path-way in their career? It's by doors opening and making the
decisions to go through them. I went to work in the '80s for a company — Crown
— that built machinery for the plastics industry. It was at Crown that I met
Jon Roberts and another gentleman who still works on our executive team, Tom Limbrunner.
Jon and I coalesced in 1988 to start PTi; Mr. Limbrunner joined us in the early
'90s. We started out in a broad field of extrusion that included a lot of
market segments. Then we flourished and got a lot of traction in sheet. So,
it's been an evolutionary process as our designs and innovation really started
to become refined and gain traction in the marketplace.
What challenges did
you experience as you grew the business? How did you overcome them?
Hanson: For any
manufacturing business, there's the constant balance of resources involving
people, capital and physical space. ... There was the 2009 event, the largest
economic downturn of our lifetime. Our personal experience in that situation
was that we maintained profitability through the whole cycle. It's not the only
economic cycle we've seen, but at that time, it was probably the fourth or
fifth since our inception, and it's not the last. Every five to seven years
there's a contraction; there's a this, there's a that. You have to be
positioned with the strength of your company to withstand it. Kind of like a
storm in a boat at sea.
To what do you attribute
the company's success?
Hanson: Our
competitors used to refer to us as the kids from Chicago — not necessarily
respectfully. Now [Jon and I] are 58 years old; I don't consider myself a kid
anymore. To PTi's strength, we've got a tremendous organization; to use a
sports analogy, we've got a lot of depth on our bench. One thing that has
contributed to our success in the past and recently is the longevity — the
stick-to-it-iveness — that our employees have with us. We have long-tenured
employees, so we don't experience a great deal of turnover at the level which I
would consider to be the core group. Looking back, there has been a tremendous
reallocation in the market — that includes some stalwart names of the industry
no longer around. In our lifetimes, there have been a lot of changes that have
all presented PTi with great opportunity.
PTi's success led to a $10 million expansion of your Aurora, Ill., headquarters in 2016. What did that include?
Hanson: We increased our facility size by 40,000 [square] feet; we were operating with a facility of 60,000 [square] feet, which gave us 100,000 [square] feet total. In that expansion, we dedicated 15,000 [square] feet to a Technology Development Center [TDC], which houses two production-scale test lines of a couple thousand pounds per hour that demonstrate some of our key technology. So, there's no scale-up; customers can come in and run sheet and take it back and feed it back into their thermoformer on a 1-for-1 scale. Each of the lines represented in the facility are multi-million-dollar lines. It's a tremendous, tremendous training and demonstration tool. In the technology center, we also have a materials-testing laboratory and a training facility for our custom-ers. One of the unique headwinds that our customers are challenged with today is, there's no longer the mindset in the workforce of going to work for a company and retiring from that company. There aren't typically the 30- and 40-year employees; there's a tremendous turnover of production folk. We saw a great need; and the training aspect of our TDC is a tremendous tool for our customers, which they can take advantage of repeatedly throughout the year.
You have a number of
patents to your credit. Why is innovation important?
Hanson: A company
in the extrusion business, doing what we do, doesn't do it with one person. The
opportunity to develop technology when you have a very talented group and live
demonstration equipment — on which [to] operate and see opportunity within the
different technical themes — is a great environment to cultivate new ideas and
new designs. We see our intellectual property as a means of differentiation;
we're very prolific and active in developing technology. We have a lot of
standard products that we see as building blocks. We get tasked from time to
time by customers who want us to develop a nuance or a new process that they're
challenged with. So, we start from a foundation of: What building blocks do we
have to draw from? We're challenged year in and year out to work with our
customers to develop things that may or may not exist.
Is there an invention
or innovation of which you are particularly proud, one that is especially
beneficial?
Hanson: Our
G-series roll stand represents a collection of four or five patented technical
features. I look at that, and it really gives me a warm feeling inside because
it is so far advanced in quality, features, functionality, precision,
adaptability and design-build attributes — and that's feedback we get from our
customers. We're challenged with going into facilities where they've never run
sheet before, so we have to train operators; we have to have machinery that is
adaptable in a culture that's trying to find their way. A customer told me that
you have to have a control system that can be run by a grandmother with long
fingernails. Those are some of the challenges of our customers, so they also
precipitate the challenges we have as their supplier and partner. So, the
G-series lineup of roll stands is something I still get excited about. We build
some pretty big stuff. We go as high as 48-inch-diameter chrome rolls at 150
inches wide — that gets to be a big piece of equipment. The same on the
extrusion complex; we build some pretty big systems, and multilayer
co-extrusion is one of our strengths — that's where you have anywhere from
three to six or seven extruders running in the same die head.
What has been your
greatest contribution to the industry?
Hanson: As a
company, I would say our greatest contribution is the integration that we extend
to our customers with respect to our offer of products or services. PTi has
been extremely successful in coming up with the big projects; when there's a
big expansion or a multi-line project, we have a knack for being selected as
the vendor of choice. These projects can span tens of millions of dollars. What
that offers the customer is continuity, so they aren't comingling multiple
brands of machines in a facility where they need constant and uniform sheet
technology.
What will be your
legacy?
Hanson: As an
engineer, it's been a play-ground for me: building machinery. It's been very
fun, and it continues to be so.