Kleer-Fax, Inc.
750 New Horizons Blvd
Amityville NY 11701

Phone
800 348-4331
Fax
631 225-1118

 P R I N T I N G   N E W S   |   April 19, 2004

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Family-Owned Kleer-Fax Keeps Tabs on Industry

By Erica Iacono
Since its inception, Kleer-Fax has been a company that has had to adapt to its environment. Founded in 1972 by the late Dan Nigro, the company was originally formed to manufacture plastic hanging folders. However, with the oil crisis that same year, the cost of PVC became too high to make sales of the product viable. Mr. Nigro had to change the focus of the company; it became an index tab manufacturer.

Owner Lou Nigro (left) and his nephew, Daniel J. Schmitt, have worked to improve the 30-year old company.

A few years later, his son Lou joined the operation and the two worked together to develop the business. “I was the brawn and my father was the brains,” remembers Mr. Nigro, who used to go out on sales calls in the morning and come back in the afternoon to produce the work he had sold. The payoff for that dedication was the establishment of nationwide representation for the firm within 10 years.

Today, more than 30 years after its humble beginnings, Kleer-Fax has grown to include 150 employees and a broad roster of clients. The younger Mr. Nigro is now president of the company and has even brought on another family member—his nephew, Daniel J. Schmitt, who is involved in sales, purchasing, and customer service. The National Sales Manager, Joe Moskosky, has been with the company for over eight years. The company, located in Amityville, N.Y., still manufactures index tabs and dividers found nationwide. Kleer-Fax distributes its products through independent office supply companies.

Although Kleer-Fax still offers the same products it has since the beginning, the company has branched out into other product arenas. Six years ago, the firm took over a local bindery that had closed its doors, and brought along its three employees. The main purpose in purchasing the company, Mr. Nigro says, was that it produced expandable products— something that would complement Kleer-Fax’s product line. “It seemed to go hand in glove,” he says. The expandable wallet and pocket folders are now a major part of the company’s product offerings.

Since that business was so hand-work-intensive, automation was the key to getting the operation running smoothly. In fact, after a short while, Kleer-Fax’s workers cut the lead time on the products from six weeks to three. Still, some of the work is done by hand because it is currently the most efficient way to ensure it is done correctly.

Another of Kleer-Fax’s current offerings is custom indexing, which accounts for 25 percent of business. Most of Kleer-Fax’s clients for this portion of the business are local printers, office supply dealers across the country, binderies, and print brokers. It is also a service that has become much easier to turn around. Jobs that used to take two to three weeks now take five or six days. Mr. Nigro says Kleer-Fax is even able to turn around a job in one day if needed.

Kleer-Fax’s success and longevity can also be attributed to its clients. “They tend to be loyal to us because we do a good job,” says Mr. Nigro. “We give you personalized service...that goes a long way in today’s environment.”

Last year, Kleer-Fax made a $350,000 capital investment, which helped purchase several new pieces of equipment currently used on the plant floor.

Not only is Kleer-Fax a manufacturer of office items, it distributes them as well. One of the latest is a product called Bundle Bands, a patented device that resembles an oversized, sturdier rubber band and is used to fasten groups of papers or folders together. Available in four different sizes, Mr. Nigro is hoping the idea will be a successful and marketable one. Kleer-Fax has obtained the North and South American distribution rights for the product.

Smoother Sailing
A trip to the plant floor of Kleer-Fax reveals an organized operation, with two eight-hour shifts running per day. The company recently made some additions to its line of production equipment, including last year’s $350,000 capital investment to improve workflow.

The company purchased a new Doboy packaging machine, a Tec-Graf 12-station collator, a Bobst die-cutter, an International gluer, a MicroMec stacker, and a compressor, all of which have made the entire operation run more smoothly. The company also recently made an addition of 26,000 sq. ft., used as a warehouse, which brings the facility’s total to 76,000 sq. ft.

Ninety-eight percent of the company’s printing work is done on offset presses—mainly Didde and Super Webs. The remainder is printed on digital print-on-demand units, usually used for short-run jobs. “I believe in staying state-of-the-art as much as we can and using technology in all of our processes,” Mr. Nigro says.

One of the greatest obstacles for companies to overcome these days is keeping up with the competition— especially when the competition is taking huge steps to cut costs. “Every day there are challenges,” says Mr. Nigro. “The main challenge that we face is competing against multinational companies who have moved their manufacturing facilities offshore.” To help combat this, Mr. Nigro says he focuses on incorporating automation in all aspects of the day-to-day operation. In fact, last year, the company received $37,500 in a state grant to help with this process.

Automation aside, Mr. Nigro is quick to point out that much of the company’s success is due to its employees. “I’m only as good as the people who are here behind me,” he says. A few of Kleer-Fax’s employees have been with the company since the very beginning, and others have been there as long as 24 years.

Considering the struggle of many New York area printing firms in the past few years, Kleer-Fax has done well. The firm’s 2003 numbers show an increase of 6 percent over the previous year.

With a company that has been around for more than three decades, things are bound to change. Given the developments in technology and the expanding roster of products the company offers, Mr. Nigro believes that the outlook for the company is good. “We have a spot as a niche manufacturer,” he says. “As long as we stay state-of-the-art and continue to be a low-cost provider of our products, we’ll be able to make a living.”

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