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Oberg Industries Exec. V.P. Rich Bartek on how the company is preparing for its 2013 growth forecast.
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-- products are we've been hearing from countless business executives saying -- are holding off on big business decisions.
Still some type of certainty comes out of the Washington area.
But we have found one company that's been growing strong and is planning for a solid 10% increase in growth in the new year joining us now.
In a Fox Business exclusive -- -- -- he's executive vice president at Kohlberg.
Industries.
First of all Richard graduate 10% growth.
Why what makes you so bullish -- you're gonna meet that target.
-- no word linked to a couple very encouraging markets one billion the energy market the medical market and the aerospace market.
These markets are all -- for precision machine parts.
That's something that that were very good at then we just see a strong demand that we've had -- good demand in 2012.
And we actually see more robustness even going into 2013.
Now your product of course requires highly trained employees you put a lot of money in on the job training how is that paid off for you.
You know we are probably the first to have face a state certified apprenticeship program in in Pennsylvania.
Now we currently have priced 25 guys are young people went in the program.
And that's helped us in down times we've but continue to invest in our people.
And in our equipment and and that's helped us be prepared for some of the spikes -- -- -- and we've.
Seen in the past few years is that actually hard -- to find that entry level employee because they have to have a certain modicum of skills before you can even get them there to train them.
Ed is David there what what we see in and what we would encourage -- -- this schools to get back to encouraging the math in the sciences and some of the metal shops.
That -- help us.
We do a lot of training our our training program would say -- somebody three to four years to get through where they can be an accomplished machinists.
We do that we we pay them along the way and they come out than they have a nice career so -- industries OK let let's talk about where you might be spending -- if you're gonna grow that much you have to you have to spend some to -- some.
Our capital equipment what kind of capital equipment are you buying going into 2013.
You know what were looked in the by his equipment to can be flexible on the shop floor that can demonstrate different processes and also equipment that can take out that the labor combine to help keep us competitive.
So we're buying that latest technology and equipment so we'd like to say that were were conservative managers but we try to spend full without progress of technology.
And that's helped us through all the years ago -- industries.
For us to be successful not not for a -- just for our customers by the way we're lucky -- one of the devices you you do make medical devices.
We see we have down there.
There is going to be attacks if -- think it's it's already in place where we're gonna have a tax on medical devices how second affect your bottom line.
I answer good point that it has affected our business it's a 2.3 percent tax that's put on the revenue of medical device manufacturers.
And we do a lot of work for these guys it's affected our business in fact in the past two months we've seen a tremendous slowdown on those types of product lives.
We we would hope the administration would maybe pie is on that tax lesson that tax and it's it's not helping our business and and at the end of the day all of these taxes get -- to a company like oberg industries.
And then get linked rate back to the consumer you know you know we end up paying -- and -- in the long run aren't natural gas were the most exciting areas.
In our economy there's no country in the world with seven -- progress in exploring for and and getting natural gas is we are you're a part of that you manufacture Portugal wind of that process what are you expecting -- 2013 from.
Natural gas that natural gas field.
Well actually in 2012.
We've increased our best.
This and that markets about 50%.
And we look to do the same again -- a larger a larger numbers into 2013.
Of that latest there were involved with technology prototyping for these major players in that market.
The horizontal drilling technology.
Has helped that market so you know just technology.
Driven the natural gas Marcellus shell locally has helped us in that market.
So we're looking for very favorable.
And revenues in that market for thirteen.
And fact if you look at our backlog got more -- are about half of our backlog is made up energy type products.
While.
Well you guys are just -- by the way you ever gonna go public.
I -- don't think so we're second generation.
Three plants in Pittsburgh guy we like it that way about 750 employees.
But I can go back -- the what's holding us the very quickly because we've run out of time had really quickly.
Just skilled employees and me we look at our number one constraint -- in the skilled employees and trying to find the right people for our jobs you know -- -- a lot of things to complain about in this economy legitimate things -- complain about but it's good to be sure even in the bad times.
There are companies like yours that are doing extraordinarily well congratulations rich.
-- I thank -- that -- industries thanks for being here.
-- thanks for having us absolutely list.
