Earning a record profit when the economy is limping seems thestuff of wishful thinking.
But that's what Colorado Springs-based Powell Products Inc. did in2002.
The maker of cosmetic applicators and swabs for the cosmetics,health care and high-tech industries, to all outward appearances, ison track to do well again this year.
'Last year was a big year,' said Stephen Robards, president of theprivately held company. 'All of the divisions are doing well (thisyear). We are on track to grow in all the markets we serve.'
Powell, which moved to the Springs in 1992 from California,employs about 75 at its factory in the shadow of Interstate 25 andGarden of the Gods Road. The factory cranked out more than 220million swabs and applicators last year.
More are on the way.
Powell plans to install additional machines early next year,boosting the factory's production capacity about 25 percent.
'It will mean more jobs - 25 to 30 people,' Robards said.
In June, Powell and a joint venture partner bought a factory inChina that makes brushes that are sold to cosmetics companies.
The factory, owned jointly with Anisa International Inc., anAtlanta-based cosmetic brush supplier, employs 300. That numbershould increase to 1,200 next year.
China is becoming a global manufacturing center. More than 760,000U.S. manufacturing jobs have moved to China since 1992, according tothe U.S.-China Security Review Commission.
Most of those jobs were in eight industries: electronics andelectrical equipment, chemicals and petroleum products, householdgoods, toys, textiles, plastics, sporting goods, and wood and paperproducts.
The two Powell factories will not compete against each other. Muchof the work done in China is labor-intensive.
Its brushes can't be made at the Colorado Springs factory, whichis more automated, Robards said.
It is the diversity of Powell's markets that kept the bottom linestrong last year, said Scott Herrera, director of Powell's clean roomand medical division. When one market is depressed, other marketsfrequently are strong.
The cosmetics industry was in a buying mood last year, whichcompensated for weak sales to electronics firms, Robards said. Thatpattern is typical when the U.S. economy is struggling.
The electronics industry is showing signs it is recovering. Ordersfrom companies that manufacture computer storage devices havestrengthened in the past month, after five years of weakness, Robardssaid.
CONTACT THE WRITER: 636-0189 or paulb@gazette.com
