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WEST CENTRAL OHIO |
Rail service may not be the top site-selection priority for plastics producers -- unless there's evidence it can be a substantial cost cutter. Some industries report a savings of up to four cents a pound when shipping in plastic pellets by rail over truck.
| That's the case with the Indiana & Ohio Railroad System, a shortline serving Clark, Champaign and Fayette counties in West Central Ohio.
"We wouldn't be here it weren't for the railroad," says Robert Neff, plant manager of LEWISystems, a producer of returnable packing systems in Urbana. LEWISystems, a unit of Menasha Corp., ships in 30 million pounds a year via 170 rail cars of high density polyethylene resins, most of it from Texas. "It would cost us a penny a pound more to bring the resin in by truck," says Neff. "That's a savings of $300,000 a year." The I&O began operations in response to a reduction in schedules by the Class I lines serving the region. Clark, Champaign and Fayette counties joined together in the West Central Ohio Port Authority, which bought rail lines scheduled for abandonment by the Class I's. The lines are leased to the I&O for day-to-day operations. Without rail service, plastics makers like LEWISystems and Tech II would have had to move elsewhere. "The difference in service from the I&O over the Class I's is like night and day," says Neff. "Previously, we received rail service at the convenience of the large line. Now, we call down to the I&O, tell them what we want, and within 24 hours, they are here. We've had weather emergencies and they've called, asking if we were all right and whether we needed materials moved around. Their customer service is fantastic." |
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The company serves all of North America from Urbana. Being close to the interstates is important, since finished products ship out by truck. The company can reach customers like Wal-Mart's and Kmart's huge distribution centers within an hour.
Another advantage LEWISystems likes about the area is the workforce, which is skilled in plastics production. The company's 200 employees are a combination of highly skilled or semi-skilled workers capable of operating computer-controlled equipment. "The workforce in this area is very good," says Neff.
LEWISystems makes injection-molded boxes, baskets, bins, tubs, trays and other transport packing systems for the food, general merchandise and auto markets. The large food retailers are looking for plastic containers to replace cardboard boxes. One product LEWISystems has developed can be used to collect the food in the field, ship to the grocery store and return to the field. The containers are collapsible so they consume less space on the return trip. A first customer is Fresh Express, the maker of packaged salads and suppliers to such fast food chains as McDonald's.
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Most of the product LEWISystems turns out for the local market is for the automotive industry. "When we first developed the containers that carry the components, most of the automakers turned their noses up at them," says Neff. "But Toyota liked them and standardized on them. Then all the automakers jumped on the bandwagon." LEWISystems currently commands about 90 percent of the auto component packaging market. |
The company's engineering staff runs fast to keep up with new product ideas. "Eighty percent of everything we produce here was developed in the last three years," says Neff.
Urbana's industrial park is one of several I&O-served sites in the three counties.
| Springfield and Clark Counties | OHiO ENGINEERED MATERIALS |
Troy |
