PROTOTECH INDUSTRIES INC.: Company shifts gears

Mike Butler says his company always has been diversified, but a downturn in the aviation business has forced precision parts manufacturer Prototech Industries Inc. to seek even more varied outlets for its services.

Butler's efforts led the business --- in Delia, about seven miles north of Rossville, --- to a new niche in the $1.2 billion NASCAR souvenir industry.

"We just had to go out and hustle business in other areas," Butler said.

He has been machining parts for more than 40 years. After moving Prototech Industries to Kansas in 1985, Butler began exploring the market for his work in the aviation-rich state.

His background is in high-tech prototypes and parts, and he and his six employees also produce aftermarket parts for cars and trucks. The company also has worked with Remington Arms, including a reverse- engineering of its 1864 Remington rolling block rifle, which Remington reissued with a run of about 360.

"I actually didn't want to get into (aviation) because it goes up and down so much," Butler said.

In 1990, he began making precision machined components for aircraft --- some fixed and some moving parts. While never accounting for all of his business, aerospace parts at one point made up almost 60 percent of Prototech's sales.

After Sept. 11, 2001, Butler watched his aerospace business, which at the time accounted for about 40 percent of the company's sales, all but dry up. He said his aerospace sales decreased 80 percent, with overall sales down about 20 percent.

"The following year we made a profit, although a slim one," he said.

The loss of aircraft-related orders and subsequent slowdown in even non-aviation business gave Butler a push to pursue other lines of work he had considered.

"When the aircraft business went down the tubes, I decided to get into this NASCAR and hot-rod-type stuff," Butler said.

He had experience from a previous company he founded, TriMetric Marine Engineering in Palo Alto, Calif., producing parts for high- performance boats. Prototech now produces hot rod parts and accessories, such as valve covers, air cleaners, doorsills and trailer hitches.

Butler said it took him two years to have the opportunity to create prototypes of a handful of souvenirs for the heavily licensed NASCAR merchandise.

"We were able to get in the door with Joe Gibbs," Butler said.

Gibbs, a former Washington Redskins head coach, owns a racing team that features drivers Bobby Labonte and Tony Stewart.

All of the designs are Butler's, including belt buckles, display cabinets and trailer hitch covers. About four months ago, he got the OK to produce about 10 prototypes of each of five items and will submit them to Gibbs' team for final approval to produce and sell items bearing the logos of Gibbs' team and drivers.

While the change in business plan has been difficult, it seems to be working. Prototech Industries, which at one point considered moving to an industrial park, has taken advantage of the slowdown to add to its facility.

"It's kind of a very challenging time to be expanding and growing, but at the same time, interest rates are low. It's a good time," Butler said.

The company is adding a new showroom and office space, and expanding its assembly area, creating more room for its machining equipment.

Butler said he is concerned with the overall climate in the manufacturing industry. Larger companies increasingly are turning to lower-cost foreign parts and labor and outsourcing some jobs overseas.

"It's not a level playing field," he said.

He noted that the manufacturing industry has been hit particularly hard by the combination of post-Sept. 11 shocks and the general economic downturn.

"The feeling with everybody in manufacturing is that whoever's left when the music stops is going to be in good shape because the supply chain's empty," he said. "Being an entrepreneur, I'm an optimist, and I think we're going to have a chair when the music stops."

Amy Bauer can be reached at (785) 295-1231 or [email protected].

THE BUSINESS

Prototech Industries Inc.

Location: 10532 E. Road, Delia

Owners: Mike and Mary Ann Butler

Employees: Seven

Founded: 1976; predecessor, TriMetric Engineering, founded by Mike Butler in 1961 (he later changed the name to Tri-Metric Marine Engineering)

Percentage of business devoted to aviation: About 40 percent before Sept. 11, 2001; about 10 percent since

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