Year of the Business Owner: Falstrom Company

Describe your business: Falstrom Company is a contract manufacturer of components for the aerospace and defense industries. We make enclosures (cabinets) and electronic assemblies used by the US Navy and Coast Guard. Through our KD Industries division, we make precision machined components used in military and commercial jet engines, and by the US Navy, and a variety space platforms. Our primary business in addition to machined components is welding, mechanical and electronic assembly, painting and finishing.

What has been your biggest business challenge? The pandemic and recent inflation have been business challenges. We had three employees die from COVID-19 and our operations were disrupted significantly during the two years after the pandemic. This required that we be sensitive to employees’ concerns regarding working during that time. To combat inflation, we have engaged in some significant cost cutting. This includes: doing maintenance as required only; bringing in raw materials just in time to begin production: and not replacing positions when some employees move on to other opportunities.

Describe your most recent successes: We negotiated a four-year labor agreement with our union (United Steelworkers). The agreement provides wage increases, competitive benefits and additional time off for our employees. In addition, we recently were awarded two contracts to support key US Navy programs.

What is your approach in maintaining your workforce? One of the ways is negotiating and providing competitive salaries and benefits for our union employees as well as our non-union and salaried employees. Further, we strive to provide training opportunities.

How has NJBIA helped your business? We have been an NJBIA member for 110 years. Over that time, NJBIA has helped the company by providing access to benefits such as insurance and training that a small manufacturer might not normally have access to. NJBIA is also the voice of business in Trenton. Small companies like Falstrom benefit from NJBIA staff who help elected and appointed officials hear what the business community needs by providing positive solutions that will help make the state a competitive location for businesses.

About the Business

  • Founded: 1870
  • Location: Passaic
  • Founder: Gustave Falstrom
  • 973-777-0013
  • falstromcompany.com

[email protected]

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