PAI spends $2 million to upgrade Minn. factory

MINNEAPOLIS—Precision Associates Inc. has invested time, money and resources into a medical device industry push that it hopes could eventually comprise 30 percent of overall company revenue.

That commitment was displayed when the provider of high-performance, consistent sealing solutions and precision-molded rubber products invested $2 million in an expansion to its 130,000-sq.-ft. Minneapolis facility that doubled the size of its older 7,000-sq.-ft. clean room for liquid silicone rubber molding capabilities.

The now 13,000-sq.-ft. ISO Class 7 clean room will allow the company to meet growing demand for rubber parts manufactured from the medical device sector, a new industry for PAI. That medical device portion of the business is the responsibility of Business Development Manager Brian Higgins, who was just hired in January. Higgins brings nearly two decades of medical device sales experience, including experience with Sil-Pro, now a part of Trelleborg. PAI once held a majority stake in Sil-Pro.

A total of 84 HEPA filters have been added to the clean room, including for silicone and rubber molding, mold prep and quality assurance rooms, as well as a gowning area and observation tower. Higgins said the firm hopes to fit as many as 14 LSR presses in the clean room one day as it has the capacity for additional equipment.

"We want to grow aggressively but (realistically)," Higgins said, adding that machines and equipment will be added as needs dictate.

A popular material selection for medical device components because of its biocompatibility with body tissue, LSR is used to manufacture seals and custom parts for diabetes glucose monitoring, neuro stimulation, respiratory care, infusion therapy, catheters, drug delivery, pacemaker leads, implantable and other devices. These added capabilities fit into PAI's portfolio because of its industry expertise, advanced material formulation and engineered solutions, Higgins said.

The company expects growth partly because of Sil-Pro's consistent growth in past years while it was a part of PAI's former portfolio. Other market trends around the global supply chain issues and employee shortages in manufacturing suggests a growth phase in the near future as well.

"Many of the customers we work with are looking to increase their supply base again after years of consolidation," Higgins said, referencing the challenge many customers have had in getting the materials and parts they need from overseas suppliers. "They want to reduce their risk of missing one of two parts that makes it (impossible) to manufacture products. The pandemic and the (supply chain challenges) have changed the thinking."

Higgins believes many customers are rethinking offshoring altogether, with the hope of adding a second or third source in the U.S. to support a more reliable timeframe.

The move to medical devices is new as the majority of PAI's current customers fall under the "industrial" label, and include the aerospace, automotive, fluid power, oil and gas, and semiconductor industries. Another 25-30 percent of the current business is derived from selling O-rings and other manufactured seals and rubber parts to distributors.

"We don't always know the application that these parts are being used for, but it is a consistent business," Higgins said.

PAI's core business includes more than 1,000 engineered formulations, used to manufacture a variety of micro- and miniature rubber O-rings. In addition to custom seals and rubber products, PAI offers more than 3,000 standard seals.

The new medical device focus will require a few additional employees, particularly as growth occurs, for operational and sales positions. PAI employs 220 and runs plant shifts 24 hours a day, five days a week. The company has invested significantly in automated inspection equipment, including cameras, and other automated machinery that can support high application molding needs. Most low- to medium-molding applications are staffed by employees, Higgins said.

"We are trying to use technology where we can to better support our manual headcount and increasing our efficiencies," he said.