Small Market Issues At the moment, the local economy and materials costs are a far bigger challenge than satisfying customers. Dayton, an industrial city tied to auto manufacturing, is, like many parts of Ohio, slow to grow and quick to lose jobs to outsourcing. It didn’t help that in October, Fortune 500 company Delphi, which employs some 5,700 people in the area, declared bankruptcy. The auto parts maker could start closing plants and laying off people this winter, according to news reports.
At the same time, Kostak says, “We’re being bombarded with cost increases and higher fuel surcharges, all of which, ultimately, have to be passed on to the consumer.”
As a result, thoughts of expanding at All-Seal are on the back burner. “What’s worked for us in the past has been geographic expansion,” Kostak says. Although that remains a long-term strategic objective, he says, the reality is that the company has to see improvement in economic conditions before the next growth spurt can occur. “We’re cautious about trying to put the cart before the horse,” Kostak says. “But we’re prepared [to expand] if we see an uptick.” New products, he adds, are the first and easiest way to add growth in this industry. Meanwhile, he remains confident that All-Seal is a healthy business in an industry where opportunity is, in his words, “never ending.”
“As the housing stock ages,” Kostak says, “the natural growth [of this business] is self-sustaining.” —Diane Kittower is a regular contributor to REPLACEMENT CONTRACTOR.