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Next Generation ("Next") is a company with true entrepreneurial spirit. Located in Lexington, Ohio, Next is one of the United States' leading manufacturers of plastic film and bags in the flexible packaging industry.
Founded in 1994 by current CEO David A. Frecka, Next is on the forefront of innovation and technology in its field. Currently employing 150 people, Next is constantly striving for excellence.
How It All Got Started
Frecka received his Bachelors Degree in Business from Central Michigan University, and began his career as a sales rep and sales manager for Petoskey Plastics in Petoskey, Michigan. In 1985, Frecka, an entrepreneur by nature, founded Ultra-tech Plastics. It was during Frecka's years at Ultra-tech where he would develop critical concepts and strategies that would later become the cornerstone of Next Generation. At Ultra-tech Plastics, Frecka built a company which reached annual sales of $20 million and became one of the largest producers of three-ply co-extruded high density polyethylene (HDPE) in the United States. Having over two decades of experience in the plastic film industry, Frecka began to recognize a need in the market for high-end, specialty products.
Noticing this empty niche in the industry, Frecka sold his interest in Ultra-tech Plastics in late 1993 to follow his instincts to aggressively build a new company to fill that need. By early 1994, Next Generation was in business.
In 1997, Frecka bought three machine parts from a salesman named Dan Niss. This chance meeting would prove to be one of the most important in the history of Next. Frecka quickly realized extreme potential in Niss. He offered Niss an opportunity to be a member of "Team Next", and his right-hand man. Niss accepted. As a graduate of Morehead State University with a degree in Industrial Engineering, Niss began his career selling the very machine parts that would lead him to Next. He has now been with the company for 10 years. Serving as the current President of Next, Niss is integral in working with Frecka to realize the company's vision. Niss, an eternal optimist, is also highly effective at keeping up company morale and cultivating the team atmosphere unique to Next.
Carving a Niche in the Market
Realizing that there are hundreds of competitors in the plastics industry, Frecka differentiates himself and his company by focusing on quality and specialization. Although there are a large number of plastic and film manufacturers in the U.S., Frecka notes, "Next Generation's size, experience, and technology place us in a category with few true competitors."
Next Generation leads the plastic packaging market with exclusive lines of multi-layered, plastic films that provide unrivaled physical, optical and aesthetic characteristics, matched with impressive price and performance advantages. Next is achieving properties and yield with their film that were previously thought unattainable.
Next Generation maintains its efficiency and innovation by the acquisition of 17 state-of-the-art blown-film lines, not one of which is over 10 years old. Most commodity plastic manufacturers operate with equipment 10 to 15 years old, which is incapable of adapting to compete in the specialty film markets that Next dominate. Also integral in the success of the company is Next's tireless strategy to use fewer raw materials (plastic resin), and their unique method of gauge control in the manufacturing process.
Next's exceptional gauge control method allows for more line speed and higher cycles than their competition. This, in turn, saves customers 5% on every run without forfeiting an ounce of quality, and allows greater yield than ever before.
Innovative Strategies to Stay Ahead of the Competition
Frecka and Next have also developed innovative strategies to mitigate the price swings in raw material cost. Frecka has continuously focused on the reduction and alternative use of production scrap. To this end, he has made equipment design changes, initiated a repelletizing program to sell recycled scrap, provided endless employee training and tracking, and developed a method to reuse other recycled scrap-based resin within new products without sacrificing an ounce of quality or efficiency.
Another constant factor in Next Generation's success has been their constantly-evolving film recipes. Next Generation has based its business on solving other people's plastic film and bag conversion problems. As a result, Next Generation has an extensive collection of unique film recipes that is evolving by the day.
A Recipe for Success
The history of Next Generation is dotted with successful innovative breakthroughs and proven business strategies. Next Generation maintains its own in house lab designed to develop and test new products as well as inspect the quality of current production, Using ASTM specifications, and some of the company's own, even tougher standards, Next Generation tests every piece of film they produce to ensure its maximum quality. Next is one of the only manufacturers to produce FDA approved films for use with edible food items. That alone serves as a great testament to Frecka's strict adherence of pursuit of quality.
What began as one plant in 1994 has evolved into three plants: Next Generation Custom Bag Division, Next Generation Engineered Films Division, and Next Generation Distribution Center. In June 2007, Next Generation will break ground on its Corporate Headquarters, which will become the fourth building in the empire that is Next Generation. In August, this building will feature a 126-in., 3-layer VAREX blow-film extrusion line from Windmoeller & Hoelscher Corp. With a custom, high-output configuration capable of extruding up to 2,000 lbs/hr, the new line is reportedly among the highest output blow-film lines in North America.
As an industry leader, Frecka was recognized with the highly coveted "Ernst and Young Entrepreneur of the Year" award for Ohio in 2002. Frecka has successfully built not one, but two companies each achieving annual revenues in excess of $20 million. Frecka and Niss both enthusiastically look forward to the company's fourth expansion this summer. When asked what the limit is to what these two can achieve together, Niss replied, "There is no limit in sight. We have proven and will continue to prove that Next Generation is the industry leader."
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