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Rochester Chamber Top 100: Manufacturing firm grows with global focus

Rochester Business Journal
September 16, 2016

Parlec Inc. has the potential for substantial sales growth, particularly if the firm continues its global focus.

“Parlec has the opportunity, especially with our tool measuring products, to expand worldwide,” President and CEO Michael Nuccitelli said. “This can be done by continuing to manufacture in Fairport and by building sales and service organizations in other areas of opportunity such as India.”

That could mean doubling the sales in tool measuring products, leading to increased manufacturing locally, Nuccitelli added.

With 110 employees at its Perinton headquarters and 30 at its subsidiary in Nanjing, China, Parlec develops and manufactures tooling and tool measuring equipment for manufacturing companies. Its primary markets are North America and Asia.

“The biggest part of our growth over the last three years came from our subsidiary in Asia,” Nuccitelli said. “We were extremely effective in providing technical solutions to customers, especially in electronics manufacturing, that enabled us to become the supplier of choice to many of the companies that manufacture brand-name products.”

Developing products and services for those customers spurred Parlec’s success, Nuccitelli said.

The company’s future success will depend on its investment in research and development, he added, especially in the tool measuring product group.

“New technologies that make manufacturers more efficient is key to our future growth,” Nuccitelli said.

Parlec was founded in 1948 as a job shop. In 1973 it was purchased by two individuals who continued to operate it as such until the late 1980s. During that time Parlec began developing tooling products, the foundation of its current tooling product lineup.

In 1990, Nuccitelli purchased a stake in the company, and, in 1992, he and his current partner, Ronald Ricotta, purchased the remainder of Parlec. In 2004, Parlec China was opened to take advantage of the growing demand in Asia.

David Hartman, who serves as senior applications engineer, said the company’s growth over the last few years came in two areas.

The first came through developing business in Asia with manufacturers of electronic components destined for U.S. based companies, Hartman said, “(and) more aggressive sales and service support domestically, focused on the areas that low-cost importers have a hard time responding to.”

Hartman noted that what sets Parlec apart from its competitors is that in its major markets the firm is one of the few North America-based suppliers.

“This allows us to service and react quicker to the changing needs and the more complex requirements of our customers,” he said.

Nuccitelli and Hartman agree the biggest challenge facing the company over the coming years relates to technology.

“Technology continues to evolve at a very rapid pace,” Nuccitelli said. “Parlec needs to continue to invest in manufacturing processes and product technologies so that we remain competitive with low-cost suppliers and also continue to provide a value to our customer.”

Additionally, Nuccitelli said, there are emerging technologies such as 3-D printing that are disruptive to the traditional manufacturing process that Parlec will have to monitor and decide how to participate in.

“Technology and product-to-market cycles are being compressed due to the international nature of our business,” Hartman added. “As the world reach of machine builders gets smaller and the technology increases, the number of combinations of products required to serve the market increases.”

However, as a durable product manufacturer, the rebound of U.S. manufacturing and industries that have been slow will provide opportunity for growth, Hartman noted.

“Expanded technology and reduced internal bureaucracy allow us to react quickly to our customer requirements,” he added. “We have been able to reduce the delivery time of nonstandard items by half over the last couple of years and we continue to improve on this service.”

The Rochester Chamber Top 100 program is presented by the Greater Rochester Chamber of Commerce and KPMG LLP. Launched in 1987, it recognizes the fastest-growing private companies in Greater Rochester. The 2016 Rochester Top 100 event will be held Nov. 3. For more information, go to greaterrochesterchamber.com.

Parlec Inc.
Develops and manufactures tooling and tool measuring equipment for manufacturing companies.
Year founded: 1948
2015 ranking: 82
Top executive: Michael Nuccitelli, president and CEO
Current employment: 110 employees local; 140 total
Headquarters: Perinton
Website: parlec.com

9/16/2016 (c) 2016 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email service@rbj.net.


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