07 February 2010

Small Company, Global Reach

The Detroit Free Press
Firm evolves into niche manufacturer


In an industrial park in Saline, MMI Engineered Solutions is proving that small manufacturing companies in Michigan still have what it takes to compete globally.

At the end of last year, the privately owned company expanded its operations, taking over an 80,000-square-foot former ThyssenKrupp building in Saline and investing in new equipment. At a time when most manufacturers have been shedding workers, MMI is making money and hiring, adding 15 employees in the past few months.

Jason Colflesh of Dearborn Heights makes transportation trays from an engineered resin at MMI Engineered Solutions at its new plant in Saline last month. The company makes products from lighter-weight materials. (Photos by REGINA H. BOONE/Detroit Free Press)
 
Like other companies around the state, the maker of material-handling products for the auto industry is changing with the times. Over the last decade, it has evolved into a one-stop niche manufacturing shop for companies and entrepreneurs with specific product needs.

That means making everything from transportable plastic bee hives to lightweight latching systems for railcars. It has also designed and built kits to hold the scalpels and other instruments that doctors use during surgeries. And MMI recently won a Small Business Innovation Research grant to develop armor for the U.S. Marine Corps using engineered plastics instead of plate steel or ceramic.

Much of this work involves figuring out how to make products using lighter-weight materials, such as plastic instead of metal.

"We seek out people's problems," said Dustin Ondovcsik, MMI's executive director of market development and business affairs. "Manufacturing is not dead."

MMI's primary customers are Detroit's automakers, but it's diversifying into the defense and medical industries, with plans to win business in the alternative-energy field as well.

Last year, MMI moved its headquarters from Plymouth to the Saline facility, where production of different kinds of engineered parts started in early January. The company is using about half of the space in the $4-million building, with plans to expand into the rest of it by year's end. It also operates a plant in Plymouth.

To be sure, MMI hasn't exited its traditional material-handling business, which accounts for 60% of its sales. In fact, it's making specially designed trays to hold the parts that General Motors assembly line workers need when they're building transmissions for the Chevrolet Volt.

Unlike other small manufacturers, MMI does more than design and build products. It also designs and produces the tooling needed to make its products, saving customers time and money.

"We try to be 30% to 40% faster than anybody," said Sean O'Hagan, MMI's vice president of operations.

Attracting a talented workforce is critical to the company's success, executives said. MMI also works closely with its nearly 200 suppliers, trying to purchase much of its materials and equipment from Michigan companies.

The focus on innovation led company executives to change MMI's name in October. It had been called Molded Materials Inc. since the firm started out making plastic parts for the auto industry in 1983.

"There's a lot of smart people here. This is going to be a good place again," Tom Connaughton, MMI's CEO and owner, said of Michigan. "The sky is not falling."

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