PRLog (Press Release)
Engineer Bill Harmon sits at an oasis break station at Precision Dynamics Corp
- Sep. 14, 2012 -
After making the decision to create its headquarters in Valencia, the company began moving all employees on June 15, 2012 and became fully operational at its new site on July 13, said Daniel Hobin, director, marketing communications for precision Dynamics. Previously, Precision Dynamics had offices in San Fernando and St. John was located in Valencia but neither facility was appropriate to bring employees together, Kost said. Having two corporate facilities operating 18 miles apart was far less than perfect. Working with the commercial real estate brokerage firm CBRE, Precision Dynamics went through a fairly exhaustive analysis to determine the optimal location. When making the decision to consolidate the two headquarters, however, the principal considerations were financial, building characteristics, and the impact to employees, Kost said. Valencia, where many employees already lived, was determined to be the right place to be.
In the process of merging the two companies, Precision Dynamics – manufacturer and distributor of patient ID wristbands, medical records and imaging solutions – decided to relocate some 250,000 square feet of its manufacturing elsewhere. Doing so allowed the company to seek out a more vibrant community, Kost said, and reduce the amount of total space housing the 265 employees working out of the Valencia headquarters.
The Santa Clarita Valley Economic Corporation, who assisted CBRE with its search on behalf of Precision Dynamics, is happy to be part of the company’s success. “Precision Dynamics is a great example of several local partners coming together to aid in the success of a Santa Clarita Valley business,” said Jonas Peterson, president and CEO. The company’s relocation brought new jobs to the local community and confirmed that the region is thriving and an optimal destination to do business, he said.
In addition to the Valencia office, Precision Dynamics-St. John has 591 employees at two manufacturing sites in Mexico, as well as 45 people in Port Orange, Fla., and 29 employees in Brussels, Belgium, Hobin said. But the company’s innovation in the health care field takes place in Valencia. The seven-year lease at the LNR Entrada Gateway Center was valued at $10 million but afforded 44,000 square feet of office space, Kost said. “It’
s an open-planned office environment to foster collaboration and creativity,”
he said. The company’s products have evolved significantly over time. Patient ID wristbands were pretty basic when introduced by one of the company’s co-founders and visionaries, Dr. Walter Mosher. In 1984, Precision Dynamics was the first company introduce a bar coded wristband system, Kost said. Today it produces and holds the intellectual property for the radio frequency identification wristbands, which reliably store and transfer data,. With revenues in the range of $200 million or more, Kost said the company produces over 1 billion wristbands a year. Stating “not all wristbands are created equal,” the identification bands need to withstand all kinds of conditions in the healthcare environment which requires a lot of research and development, Kost said. The company has labs which do extensive testing, replicating the products’ use in the marketplace to see how they’ll stand up.“ The company prides itself very much in the overall quality process we employ,” he said. “Our very simple mantra is ‘creating raving fan customers."
In 2004, Precisions Dynamics expanded operations outside of the U.S., establishing an international headquarters to meet deadlines for health care and non-healthcare customers. Its international clients represent 15 percent of its business today, Kost said. “We see the international market as a tremendous growth opportunity,”
he said. “It doesn’t just include Europe; it includes activity in Central and South America, Asia Pacific and more than 100 countries.” And while the company has also expanded the use of wristbands for the entertainment and leisure markets, 80 percent of the company’s revenues today are associated with the healthcare marketplace, Kost said. The balance of the wristband revenues come from inmate security and animal health industries. Longer term, the company expects to continue growing through “organic growth,” by acquiring companies with compatible platforms like St. John. But innovation remains the driving force. “When you visit here, you’ll quickly pick up on the innovative, collaborative spirited kind of environment,”
Kost said. “It’
s what you’d expect from a global leader in patient ID and other healthcare consumables.”
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