Piezo-Kinetics Expansion Enables Vertical Integration

A lot of companies outsource materials and processes to suppliers, but sometimes even suppliers need their own outsourcing. And that was something that Piezo-Kinetics was looking to eliminate.

It’s one of the reasons that the company’s recent expansion of 13,000 sq ft, making its facility 33,000 sq ft, was so important for development. With a third of the company’s business being in medical devices, it’s helping the company become a power player in an industry that is benefitting from an aging population.

“That’s one of the marketplaces that’s always moving forward and growing, and there’s always research to do something less invasive and more cost-reducing,” says sales engineer Todd Baney.

The company, which is based out of Bellefonte, PA, has been around since 1979 and was purchased as a subsidiary of Crest Ultrasonics, Inc., in 1996. Previous to its current facility in the Penn Eagle Industrial Park, approximately 10 minutes from Penn State University, the company was located in an old grist mill — a facility which Baney said was not conducive to business.

It produces piezoelectric ceramics for a variety of purposes, including medical devices. The materials that the company deals with are Navy type I, II, and II, lead metaniobate, and lead zicronete titanate, which are used to help create a variety of medical tools, such as ultrasonic surgical blades, nebulizers, vaporizers, and even tools to perform liposuction.

The result is a major jump in output, from 2,000 lbs of powder a month to 20,000 lbs. The company is also blending 10,000 lbs of powder a month — something that Piezo-Kinetics had no outlet for before the expansion.

The company used to outsource the blending process for the materials before the expansion, making the lead times for customers longer. Previously, lead times could be from five weeks and up to 12 during the expansion. Now that the expansion is completed, they’re back to a five-week lead time, and Baney says they’re often beating them.

“We’re less dependent on changes in the raw earth elements market,” Baney says. In addition, many of their competitors are not able to match that — and some of them are even buying materials from Piezo-Kinetics. In addition, the company is also cutting overhead, which is a huge boon for the company.

According to Baney, the company is looking to grow between five and 10% over the next five years, with an additional 10,000 sq ft expansion if everything goes according to plan. The company is also starting a strong marketing campaign to increase business. Although there is no official new hiring as of yet, Baney says that there is definitely the potential with an increase in business, which is something they anticipate with the expansion.

Reina V. Slutske is the assistant editor for MD+DI.