out of business, we're still here and we're growing
and expanding," President Frank J. Semcer Sr.
said during a site visit by Assemblyman Upendra Chivukula.
"Our products have been on the moon. Our products
are in every hospital operating room."
Chivukula toured the plant with Frank Semcer; his
son, Brian Semcer, who is Micro Stamping's director
of manufacturing; Micro Stamping Customer Service
Manager Al Carolonza; and NJBIA President Philip Kirschner.
NJBIA's Site Visit program is designed to educate
lawmakers about the issues confronting local businesses.
Micro Stamping specializes in manufacturing smaller,
more delicate metal products used in the automotive,
aerospace, industrial and electronics industries.
Its Micro Medical Technologies division specializes
in surgical instruments such as endoscopic scissors
and vascular clamps. Its new division, Micro Star
Innovations, was created in Tampa, Florida, to take
advantage of the new products that can be designed
and made from plastics and automatically assembled.
Micro Stamping is celebrating its 60th year of doing
business in the Garden State. Established in 1945
in Maplewood by Frank Semcer's father, the company
moved into its existing 70,000- square-foot building
16 years ago. Today, Frank runs the business with
his three children-Brian, Frank Jr., and Al Carolonza.
Like many manufacturers, Micro Stamping offers a
relatively high average wage of over $50,000 per year
and quality health benefits. And Micro Stamping supports
its workers' continuing education by paying their
tuition.
In early 2000, Micro Stamping employed about 300
people. But with electronic components being such
a large part of its business, the company suffered
as the bubble burst on the telecommunications industry.
Today, the company employs 190 people, but it is growing
again.
Nevertheless, the company faces challenges. Take
the State air toxics tax imposed last year. The company
is now being taxed retroactively over $100,000 a year
for emissions that the NJ Department of Environmental
Protection had already approved.
What's more, federal government regulations prevent
Micro Stamping from making the changes necessary to
quickly reduce the emissions. Micro Stamping could
meet the State of New Jersey's new requirements by
changing the solvent it uses. But because the company
makes medical instruments used in surgery, even small
changes to the manufacturing process must be thoroughly
tested and approved by the federal Food and Drug Administration
(FDA). Frank Semcer said FDA approval could take about
a year
Also, the cost of the company's health benefits program
is soaring at a double-digit inflation rate, to the
point where it's paying $90,000 per month for employee
coverage.
"Our employees are concerned," Frank Semcer
said. "They're almost willing to give up wage
increases to support health care, and giving up a
wage increase does no one any good."
So how does a company that has these kinds of cost
increases make billions of products that are flawless
and cost less each year?
"We focus a lot on continuous improvement,"
Brian Semcer said. "Our employees understand
that what we did yesterday will not be good enough
for the customer tomorrow."
