Moving from China to Rhode Island

The Situation

ATP Manufacturing, a maker of urethane products, primarily insoles for high-quality manufacturers of shoes, boots, and sneakers, has maintained its competitive position in a consolidating industry, by focusing on a niche business. To enhance its ability to compete in an industry where pennies count, ATP needed to invest in automated manufacturing equipment.

About the Opportunity

ATP needed new funding to build a fourth production line to increase its ability to take on additional orders and change production without cutting into other jobs. Most importantly, new equipment would reduce unit costs below what it paid for equivalent work in China. This also would allow ATP to keep jobs in Rhode Island and grow.

Why the BDCRI Got Involved

The BDCRI decided to provide a new round of financing to ATP, in the form of a $500,000 term loan, because:

1. CEO John Carroll and General Manager Keith Lonergan had the operational discipline required to succeed in a high volume, low margin business.
2. They put together a top-flight engineering, finance, production, and sales team.
3. They knew the industry, having weathered significant changes over the past decade.
4. They had a strong growth plan.