Plant Tour: Hoffer Plastics

"Focused factories" accommodate growth and keep Hoffer on the cutting edge in the packaging industry as the third generation of Hoffer's leads the way.

Driving into the neighborhood of South Elgin, IL, you'd never know that the sprawling single-story brick building sitting on 24 beautifully manicured acres is a plastics processing facility.  It was never intended to look like a manufacturing plant, and when Robert A. Hoffer, founder of Hoffer Plastics Corp. in 1953, built the initial building, there were no neighbors. As the neighborhood grew up around Hoffer Plastics, the company even took care to place its nine material silos at the back of the 365,000-sq-ft facility, and hidden by a gently rolling hill so as to maintain the "residential" flavor of the neighborhood.

As Hoffer Plastics expanded over the years, Bob Hoffer added onto the original building. He cared not only for his business, but for the people who helped make Hoffer successful, and when an addition would have meant removing windows in some offices, he created a beautiful atrium so the employees in those offices wouldn't lose their natural light. Several times a year, the plants are changed to reflect those of the season, and provide a place for employees to enjoy.

Eight plants in one

As the company grew, one of the unique management ideas Hoffer implemented was to create 12-press "focused factories" within the plant. Today, there are eight of these "focused factories" housing 97 presses ranging from 35 to 650 tons. Each "factory" has its own "plant manager" and is operated like a small company within a company. Many years ago, in an interview with Bob Hoffer with regard to his "focused factory" idea, he said that he believed that a 12-press plant was a manageable size. Today, Hoffer employs approximately 400 people, and considers them all a part of the "Hoffer family."           

Plant Tour: Hoffer Plastics

The south side of the facility houses four "focused factory" plants which were the first additions to the original building that Bob Hoffer made as he grew the business. Due to the ceiling heights, Hoffer Plastics uses this side of the building to run molds that require smaller tonnage presses. In fact, all of the presses in this area are 300 tons and under.

The business is rich in diversity, and that is particularly evident on this side of the building. It is very common for the same plant to run polypropylene, polyethylene, and nylon. In Plant 1, the manufacturing focus is on molding closures in 12, 8-cavity molds that run in 150-ton presses. The molds produce these closures using in-mold closing technology of a living hinge, and apply press-side automation.  Separately, Plant 3 houses larger 300-ton presses and molds different types of parts, including two-shot components. The company recently installed new Sumitomo Demag 2-shot presses in this area in order to maintain volume requirements for appliance work recently awarded to Hoffer Plastics.

There are a total of three tool rooms: one tool room on the south side of the facility and two on the north side, to serve the eight focused factories. The south side tool room performs maintenance and repair for the south side of the facility. It is also responsible for building the prototype molds for customers.

Growing packaging presence

The north side of the building was added onto beginning in the late 70's and designed specifically to accommodate Hoffer Plastics' increasing packaging business. This side of the facility houses presses from 400 tons up to the largest press - 650 tons. The north side of Hoffer Plastics also has a plant that is dedicated to the production of a proprietary product, the Hoffer Valve, well-known in the Bag-in-Box Industry, which has a total of four components. Packaging accounts for more than 55% of its business mix. 

Additionally, Plant 7 contains presses that are 500 tons and larger. Last year, Hoffer added four new Sumitomo Demag presses to this facility, all running caps and closures for the company's packaging customers. A 600-ton Husky molding system runs a stack mold to produce caps. Plant 8 operates 500- to 600-ton presses, and molds components for the consumer and automotive markets. This year, Plant 8 will receive four new Sumitomo Demag presses. In addition to molding, this facility performs assembly operations, and contains presses that mold parts using the MuCell microcellular molding process.   

The North side tool rooms are responsible for molds in Plants 5, 6, 7 and eight. Computer tracking of preventative maintenance scheduling helps the moldmakers know when PM is required on the various molds. "We have a very aggressive mold-maintenance program here," says Jack Shedd, Hoffer's vp of marketing and sales. "We run very high-cavitation tools here and up-time is critical. It takes a huge amount of dedication and commitment to maintaining our customers' tools, but we understand that the success of our customers is dependent upon our ability to keep the tools well-maintained and running at optimum cycles."

Just next to the north-side tool rooms is a unique Sample Lab containing three presses (150-, 300- and 500-ton) to qualify new molds and establish process parameters. Hoffer found value in being able to quickly sample new molds in this lab and not have to disturb normal production which slows down the approval process dramatically.

Hoffer is continually investing in the company, and turns its presses every seven to eight years. Each press at Hoffer has a magnetic name plate attached to it. The person whose name is on the press is the one responsible for that particular press's operation. This is just one way that Hoffer provides true "ownership" of the responsibilities of its team members.

Talkin' 'bout co-generation

In 1991, when energy was just becoming a major issue, Hoffer Plastics began installing a co-generation plant with nine 900-kW power generators to ensure uninterrupted power, even during the worst Midwestern thunderstorms. By 1993, the system was complete. Hoffer installed the generators, because at that time, it was the second largest user of power in Northern Illinois.

Today, the co-generation system provides economical energy to Hoffer Plastics. Each day, the company looks at a spread sheet to see if it is more economical to run off-grid.

The company also utilizes an early detection system that provides information such as wind speed and lightening in the area, and turns on the generators to a "standby" mode in preparation for a storm. "We've never had a black-out here," states Shedd. "With 97 presses, a black-out could be a big problem!"           

The family business

William A. Hoffer, son of founders Bob and Helen Hoffer, is President and CEO of Hoffer Plastics and has been part of the company since childhood. One thing that Hoffer did that is paying big dividends today is to fund all its expansion and machinery purchases with profits, and not become highly leveraged in debt. "Once you're highly leveraged, you're behind the eight ball," he says. "We came to the realization that if you're not highly well-capitalized you have to fund consolidation with equity investors, and they love flipping dollars - they're not in love with the business. They have a totally different set of priorities."

In a family-owned business, Bill Hoffer adds, "you have to decide what do you want to do long term and are you up for the battle?"

Times have changed since the early days of Hoffer Plastics. The business is much more difficult because there is much less commitment in customer and supplier relationships. "Years ago your goal was making the customers happy no matter what," he states. "Today it's so different. Your exposure is so much greater. A family business is a wonderful thing, but you have to be careful of the expectations."

Charlotte Hoffer Canning is the Business Development Manager for the company and one of three, third-generation of Hoffer's actively working in the business today. She truly admired her grandfather and the legacy he left. "He built an amazing business and we're all proud to work here."