Kasper Machine sees excellent growth
Little more than a year ago, Kasper Machine Co. was laying off employees. Today, after its purchase by an Italian company, the Madison Heights specialty machine manufacturer has expanded into the former Damman Hardware headquarters and is diversifying beyond the auto industry.
And despite the death of former owner Art LeMire two weeks after Kasper's February 2005 sale to IMS Deltamatic SpA, Kasper is moving forward under its new ownership. It is converting to the IMS product line - made with American components - in order to expand its customer base into aeronautics and other industries.
Meanwhile, Kasper is retraining employees and it has expanded to 45 workers. Founded more than 60 years ago, privately held Kasper designs and makes precision systems for the manufacturers of transportation, off-road, hydraulic, appliance and other precision components.
IMS's automotive division designs and produces machines for the makers of auto interiors, said Daniele Vaglietti, vice president, who travels between Italy and Madison Heights to get the U.S. headquarters off the ground. Its converting division makes specialty machinery that allows companies to convert paper for the production of paper rolls, cigarettes, aluminum foil and milk cartons, for example.
The IMS purchase was a timely one for Kasper leaders and employees. Like many companies caught in the automotive supply chain's price/cost vice, Kasper had started laying off employees, said CEO Earl Frank, who took Kasper's reins after LeMire died.
"The industry just went crazy," Frank said. "It was going on for four or five years, and (Sept. 11) didn't help. Art was downsizing and we were just going to see what happened."
But IMS owner Raffaele Ghilardi had noticed of Kasper almost two years ago, when he was searching for American suppliers to help introduce, assemble and service his company's products here.
Now, under IMS, Kasper has expanded with the lease in January of a 37,000-square-foot facility - the former Damman's Hardware headquarters, just south of its existing site on Stephenson Highway. Plus, in February, it bought Samsomatic, a Plymouth company that sells gage technology to monitor and control the quality of manufacturing processes.
The original 35,000-square-foot Kasper site will serve as the company's tool room, while the new quarters will contain assembly, Frank said.
"The intent is to manufacture the machines here. It is cheaper to build them here than to ship them here," Frank said. "They are giving American suppliers a shot in the arm because they are giving them business."
Kasper's production changeover is expected to be completed by the end of the year.
Joanne Maliszewski covers real estate for Oakland Business Review.
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Italian Trade Commission