Decc Co. Posts Record Sales for 2017
The company reached $9.4 million in sales for the year, besting its previous record of $9.17 million set in 2007. After taking into account programs set to launch this year and forecasted sales to current customers, it expects to be over the $10 million mark at the end of 2018.
The Decc Co., a coating applicator based in Grand Rapids, Michigan, generated the highest sales in its 53-year history in 2017 and is forecasting an even better 2018, says Fred Mellema, president and second-generation owner of the family-run operation.
The company reached $9.4 million in sales for the year, besting its previous record of $9.17 million set in 2007. After taking into account programs set to launch this year and forecasted sales to current customers, Decc expects to be over the $10 million mark at the end of 2018.
“Obviously the goal of every business is to grow sales,” Mellema says. “But to experience over 18 percent growth this year is something I never anticipated.”
Decc’s previous high-water mark in 2007 was the result of the addition of a very large program. Unfortunately, that project was short-lived, ending just as suddenly as it began, and the company experienced the worst years in its history in 2008 and 2009. That will not be the case this year, Mellema says.
Growth in 2017 could mostly be attributed to a new quoting strategy deployed at the end of 2016 that resulted in Decc’s hit ratio of bids won almost tripling over years prior. As a result, the gain in sales in 2017 is from the addition of many new programs rather than just one or two customers.
The other main contributing factor was the addition of robotics to the back end of Decc’s high-volume production line for coating touch-up. The company says this investment has allowed it to quote jobs previously not feasible because it could not cost-effectively provide complete coating coverage on complex part geometries before.
“I have been a part of Decc since I was just 12 years old and can’t think of a time when the future of the company has ever been more optimistic,” Mellema says.
Considering that the company is getting in on the front end of these new additional programs in 2018, the forecast for beyond looks even rosier.
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