Bergen Industries is a 100 year old company located in Northeast Pennsylvania. Bergen provides steel mold parts and complete molds to the concrete block and paver markets. It is one of only 3 North American businesses that provide such parts and molds. All parts are elaborate assemblies of machined steel. As such, the business is a large metal working shop that manufacturers the parts by machining, welding, heat treating, and grinding purchased steel.
Dating back to 1907, the founders opened a small machine shop in Bergen County, New Jersey, bringing with them years of machining experience. The company later diversified into cinder and concrete block production, machines, and tooling. The company subsequently relocated all operations to NE PA.
With the on-going recession of the last 4 years and the collapse of the construction industry, the block business has seen a decline. After prospering for many years, sales have gone from a high in 2005 to operating losses the last 4 years. The company was struggling to meet remaining demand for its product due to lack of sufficient working capital and heavy debt load.
Under increasing financial pressure, the company requested the assistance of the Northeast PA SEWN office to save the business. SEWN provided the company with financial oversight, cash flow analysis, and cash management tools. SEWN was also successful in fostering a credit extension with the senior creditor, allowing the company to continue operating for an extended period.
Ultimately, the owners decided to entertain purchase offers from interested parties. After being forced to temporarily shut down, a successful purchase of the business was accomplished and the new owners resumed operations. Former salaried and hourly staff has been rehired, and the company continues to successfully ramp up manufacturing operations.
