Nercon Engineering & Manufacturing, Inc., Oshkosh, Wis., announced plans to consolidate manufacturing capabilities and corporate offices under one roof at their plant in Oconto, Wis. The decision to combine the two operations into one expanded, upgraded, state-of-the-art facility is driven by lean manufacturing practices.

“To continue the same manufacturing operations in plants that are just 80 miles from one another is not efficient for our company or our customers,” says Steve Anklam, vice president. “Lean manufacturing is all about optimizing our processes and eliminating waste. This move and expansion in Oconto will help us eliminate waste, improve manufacturing and assembly processes, improve delivery and pass savings and benefits on to our customers. This is just the beginning of many positive changes for Nercon.”

Nercon has already made significant investments to improve the Oconto facility with more than $5 million in equipment and upgrades, including a new laser, powder paint system, deburring, CNC rolling and CNC axis router machines. Plans for a 30,000-square-foot expansion are also in the works along with plans to add 15 new jobs over the next year. Though no site has yet been chosen, Anklam indicates that Nercon is looking in the Neenah/Appleton area for this relocation.

“Nercon has a very strong balance sheet with zero long-term debt,” says Joe Roesler, vice president of finance. “We have been able to pay for all of our capital additions mentioned above with operating cash flow. We will also seek to leverage our strong balance sheet by looking for acquisitions that complement our conveyor business and our manufacturing capabilities.”