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ANNUAL EMPLOYEE MEETINGS
2016
C
ompared with 2014, when Plenco had its second
highest annual sales since its founding in 1934, 2015
witnessed a downward slide due to the glut of oil
flooding the world energy market, Plenco President Mike
Brotz reported at the annual employee meetings held on
April 7.
Mike provided a detailed description of 2015 results across
product lines that showed decreased sales in resins due mainly
to the sudden drop in demand for Plenco proppant resins
used in the hydraulic fracturing process. Plenco molding
compound sales fell as well.
“Specifically, the cause and effect of a severe supply and
demand situation within the energy sector…as well the strong
U.S. dollar have collectively brought on the magnitude of sales
decline we are experiencing at Plenco,” he said.
Mike explained that U.S. manufacturing specifically entered
into a recessional mode as manufacturing activity measured
by the ISM Manufacturing Index steadily declined through-
out 2015. The manufacturing sector in the U.S. economy
had been suffering from low growth for a decade or more.
“U.S. exports of manufactured goods decreased for the
10th consecutive month as a strong dollar made U.S.
manufactured goods more expensive for overseas buyers,”
he said. Manufacturing reached contractual territory in
November 2015 for the first time since 2012.
Mike urged Plenco employees to continue to work
“smartly, efficiently and most of all innovatively” to assure
the lowest cost of manufacturing Plenco products. “Together
we have done it before, and we’ll do it again,” he said.
“Plenco’s 82-year history is clear proof.”
Mike reminded the employees that Plenco will weather the
current economic storm because of its adherence to the Four
Pillars on which the company’s strength is built: Innovation
in new products and processes; lasting and enduring
relationships with Plenco employees that give strength and
resilience to the company; a sound financial foundation; and
a long-range concern for the future of the company and its
employees.
“These strong pillars should give you and your family con-
fidence and hope for a continuing positive future at Plenco,”
he said. “Hope is the key word…I can assure you that we at
Plenco do have a strategy under current circumstances, just
as we have had at other challenging times.”
In concluding, Mike said, “What a difference a day makes,
and the difference is you…all of us whose working lives
revolve around Plastics Engineering Company and our hope
and confidence in the future. We are hoping for a good year
ahead, and then ‘What a difference a year will make!’”
What a Difference a Year Makes!
Plenco Sales Decrease in 2015 Due to Energy Oversupply
And Under Demand, President Mike Brotz Reports
2016 Wage and Bene ts
Two Percent Across-the-Board Hourly
Wage Increase Announced, Despite
Difficult Business Conditions
Two generations of Plenco leadership. (L-R) Jesse Brotz, Adam Brotz,
Mike Brotz, and John Brotz, before April 7 employee meeting began
at the North Avenue Conference Room.
HR Vice President John G. Brotz reviewed wage
and benefit increases at the annual meetings and
announced that a general across-the-board wage
increase equal to 2 percent on existing wages will
be payable to employees on their April 14 paycheck.
John presented a 25-year comparison of
accumulated inflation increases with Plenco wage
increases. “In each increment,” he said, “Plenco’s
accumulated wage increases have surpassed the
overall cost of living increases over the period.”
With respect to benefits, John said the “bottom-
line total” of additions that employees will receive
because of the wage increase will add an additional
value of 14 cents per hour on average. “The roll-up
effect will be seen on each of your pension accounts,
Social Security, worker’s compensation, vacation
time, holiday pay, and sick pay against hours actually
worked as a result of the wage increase,” he said.
“We often forget about these hidden benefits and
their associated costs,” John said, “But they are very
real costs to this company that must be put in the
prices of our products.”