Pacer Group harnesses new markets
Diversification, vertical integration cultivate growth
Premium content from Tampa Bay Business Journal - by Jane Meinhardt, Staff Writer
Date: Monday, September 27, 2010, 12:00am EDT - Last Modified: Thursday, September 23, 2010, 9:45am EDT Full Story With Photos
SARASOTA — When Joe E. Swiatkowski founded Pacer Group in 1979 he began building one of the few wire and cable manufacturers in Florida using strategy based on foresight coupled with sound financial decisions.
His two sons, who continue to adhere to the family’s business philosophy, operate the company today.
“My father is a believer in preparing and saving,” said John Swiatkowski, president. “He passed down that philosophy to us and to our employees.”
Pacer began preparing for the economic recession about four years ago and started diversifying into additional markets and products. Historically, Pacer has manufactured and distributed wire, cable and electrical components for the marine industry.
When the marine industry started going downhill as the economy began faltering, the company expanded and added low-voltage products for automotive use, performance racing, recreational vehicles, golf carts and agricultural vehicles.
“It’s tough to get traction in new ventures, but any motorized vehicle that uses a battery requires a fair amount of wire,” Swiatkowski said. “We experienced a turnaround in September last year. We got very aggressive and got customers from our competitors while we continued growing in other areas. We gained expertise that allows us to be successful in other fields.”
Whether Pacer was lucky or chose wisely, most of its customers managed to keep their doors open during the recession, he said.
The marine industry remains a core business and accounts for about 70 percent of Pacer’s sales and production. The company’s customers include some well-known area boat manufacturers such as Chris-Craft, builder of iconic powerboats.
Chris-Craft has used Pacer as one of its vendors for years and purchases wire and blank electrical panels to customize for installation on its various models, said Steve Callahan, Chris-Craft’s vice president of materials.
“Pacer caters to the marine industry,” he said. “I’m not aware of another local company out there like it. It’s a superb company that’s done a very good job for us over the years.”
Pacer’s major accomplishment was switching its business model from solely distribution to also manufacturing and adding additional products to vertically integrate the company, Swiatkowski said.
“We decided vendors controlled our fate,” he said. “We made the leap and started manufacturing in 1993. We fabricate and engineer for customers that are outsourcing electrical systems and have grown that business.”
The company’s business model now focuses on three functions — wire and cable manufacturing, engineering and fabrication of panels, harnesses and battery cables, and electrical components distribution. Pacer is equipped to handle the needs of large-volume customers down to those of a small service and repair business, Swiatkowski said.
Although Pacer has what he considers a solid foundation and reputation, the company is ramping up its marketing through the Internet and by exhibiting at major trade shows in the United States and internationally.
Nearly 8 percent of the company’s business is international, but Swiatkowski expects that to increase to 15 percent or more over the next several years.
Large volume production and sales are done at Pacer’s 42,000-square-foot headquarters in Sarasota. The company built a 44,000-square-foot panels and harness manufacturing facility in Wauchula in 2007, and a Fort Lauderdale office handles East Coast distribution.
Pacer is debt-free except for a mortgage on the Wauchula facility, which the company established with assistance from economic development officials there.
Swiatkowski stressed that employees at all three business units contribute to the company’s success. The company provides a group health insurance program and a 401-K plan for employees.
“We try to put emphasis on the people who got us here,” he said.
PACER GROUP INC.
NATURE OF BUSINESS: Wire, cable, electrical components manufacturer and distributor
ADDRESS: 1555 Apex Road, Sarasota
PHONE: 941.378.5774
WEB: www.pacergroup.net
