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High Tech Manufacturing Thriving in Payette |
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In 1981 Teton Machine Company relocated from Jackson, Wyoming to Payette, Idaho to be closer to Hewlett Packard in Boise. For the next decade or so the company quietly employed up to sixty people producing machined mechanical parts for computer printers, disc drives and a variety of other devices. During the nineties Hewlett Packard and other American manufacturers were re-engineering products to use fewer machined parts and more molded plastic and sheet metal components to drive down costs. The nineties also brought a push toward sourcing manufactured components in other countries to take advantage of lower wages. Teton struggled to find a new niche in the changing economy and suffered through some lean times and lay-offs.
Several years ago Teton began to focus on industries demanding rapid customer response and extremely high levels of precision. An aggressive program to improve the company's efficiency through technology upgrades allowed Teton to compete on the world stage and earn the business of a number of high profile manufacturers. Cam operated screw machines which were labor intensive to operate gave way to computer controlled lathes and machining centers which produced mechanical parts to more exact standards in less time. Software was introduced allowing Teton employees to view a virtual three dimensional model of a mechanical component and use that model to program its manufacture.
Over the past three years Teton has undergone a rigorous upgrade and audit of its processes leading to International Standards Organization (ISO) 9001 registration and Food and Drug Administration registration. The technology upgrade continued with the addition of several new computer controlled lathes and machining centers costing approximately $250,000.00 each. The company also began an Employee Stock Ownership Plan (ESOP) which purchases stock from the current owner and transfers that stock to the employees of the company. The investments in new technology and the move toward giving employees a more important stake in the business appears to be paying off.
Today Teton employs forty people from Payette, Weiser, Vale and the surrounding area producing mechanical parts and sub-assemblies for medical device manufacturers, aerospace companies, industrial valve and pump manufactures, the microchip industry and a variety of other manufacturers. Teton is on pace to exceed twenty five percent sales growth for the second straight year, and there's no reason to believe the trend won't continue. Sales Manager Jim Franklin stated, "ISO and FDA registration really opened the door for us. We've developed relationships with some very high profile companies with products just entering life cycles that should last at least five and maybe up to ten years. Capacity is our biggest limitation right now." Vice President and General Manager Andy Oyervides also sees a bright future. "We're aggressively seeking new employees and our business growth is allowing us to further upgrade the facility. We've just placed an order for a horizontal machining center with a one hundred and twenty tool magazine and an automatic pallet system. It's a costly machine at almost a half million dollars, but the added efficiency and capacity it brings will far exceed the cost." Andy said. "The ESOP may be the most exciting development. Employees who realize they actually own the company are much more interested in finding more efficient ways to go about their daily duties." He added. |
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