McConkey is rolling out the next stage of its strategic growth plan with a continuing $3 million investment that includes equipment modernization, new product development, capacity expansion and production centralization.
“We believe that to be industry leaders, our operational cost structure must allow us to heavily invest in product innovation to solve important problems for our customers,” says Derek Moeller, President.
With this investment, McConkey will increase its commitment to more industry innovation in the coming years and centralize its two production facilities to the existing Washington state manufacturing plant. It’s a move made possible by higher line speeds and enhanced technology, which allow for less manufacturing space to maintain the same output – a strategy that has proven successful for companies across the globe.
As part of this centralization, the company is investing in updated equipment to modernize its thermoforming operations, a continuation of nearly $3 million over several years in capital spending to develop new products, add capacity and improve production efficiencies. These investments have resulted in industry innovations including rEarth™ pots made from water bottles, KONG nursery carts and plastic shelving and BondShell photorealistic textured decorative containers.
Full production will begin in October in Washington, including an on-site tooling department that will allow for faster product development of thermoformed containers. “We chose Washington in part due to lower utility costs, which are a major component cost for plastic manufacturers,” says Moeller.
McConkey is investing in additional storage capacity in Washington, providing enough capacity for normal inventory levels, and will be inventorying products in Ontario, California. Delivery frequency will remain the same or increase to all existing California routes.
“Centralizing our production operations will result in higher uptime, more capacity and improved on-time delivery,” said Stina McConkey, COO.