CAROLINA CORE.

• Author: Campbell, Colin
• Position: 2022 SMALL BUSINESSES of the YEAR

Selecting BNC's Small Businesses of the Year winners is an exciting annual task that culminated this year with these companies:

* Core Technology Molding, a Greensboro plastic-injection molding company.

* Firsthand Foods, a Durham distributor for local farmers and meat processors.

* Speckled Paw Coffee, a collection of coffee shops in four small N.C. towns.

* Seaview Crab, a Wilmington distributor of seafood at retail markets and restaurants.

The quartet was chosen from more than 75 applicants. The judges were Byron Hicks, who is state director of the Small Business and Technology Development Center; Anna Lynch, CEO of Raleigh-based Lynch Mykins Structural Engineers and one of the Small Businesses of the Year winners in 2021; and Business North Carolina Publisher Ben Kinney.

The judges considered creativity, community impact, persistence and other factors in making the selection. The businesses had to be in operation for at least five years.

"Every year, I am amazed at the quality of our winners," Hicks says. "They are a true testament to what makes our state's economy so awesome. Hard work, dedication and the ability to adapt to changes and challenges are what make these businesses special."

It's the 27th year that Business North Carolina has published the Small Businesses of the Year award, which is sponsored this year by Duke Energy. The goal is to honor smaller enterprises that form an often overlooked core of the state's economy.

The state had about 155,000 companies with between two and 19 employees in 2021, along with about 21,200 with 20 to 499 workers, according to the U.S. Small Business Administration. There were also about 790,000 sole proprietorships.

CORE TECHNOLOGY MOLDING CORPORATION

BREAKING THE MOLD

While working in the early 2000s at electrical connector manufacturer AMP (now TE Connectivity), Geoff Foster helped develop a patented seal used in tens of millions of new connectors that wound up in Ford cars and trucks. Fie received a $99 plaque, a nice gesture that also convinced him it was time to start his own injection-molding business.

Sixteen years later, Foster has built a North Carolina entrepreneurial success story. Core Technology reported revenue growth of nearly 300% in 2021, and even faster profit gains, aided by sales of millions of plunger rods used to deliver COVID-19 vaccines. The company projects sales of more than 100 million rods in 2023. Previously, most revenue had stemmed from supplying vehicle manufacturers.

Much of the company's growth has occurred since its move in 2018 into Gateway Research Park, a partnership of Foster's alma mater, N.C. A&T State University, and UNC Greensboro.

Foster, 55, gives much credit for his success to N.C. A&T, which attracted him from New Jersey in the mid-1980s. He's taught classes at the school for 17 years and started hiring its graduates in 2008. He also has an MBA from Wake Forest University.

Retaining staff is crucial for the company's success, Foster says, which is why he sponsors annual employee appreciation trips. Previous locations have included Cancun, the Dominican Republic and Jamaica.

Comments are edited for length and clarity.

IS THE LABOR SHORTAGE MODERATING? HOW HAVE YOU ADAPTED?

The labor shortage has improved, but we have also raised our standards significandy due to the higher quality expectations of our customers. We now send employees to blueprint reading courses, partnering with Guilford Technical Community College. Entry-level operators are able to hit the ground running and not just put parts in a box. We have also been supported by N.C. State University's Industry Expansion Services group with training for medical devices, internal auditing and other requirements to meet various industry standards.

IS GREENSBORO'S CATEWAY RESEARCH PARK A GOOD LOCATION FOR YOUR BUSINESS?

The park has been a great partner. They have supported our exponential growth when Core Tech doubled our capacity during COVID-19. Gateway also submitted a $2.1 million grant from the U.S. Economic Development Administration, while the local city government matched with an additional $750,000. Our plans are to break ground in the first quarter of2023 with the next phase of our expansion.

HOW HAVE YOU FUNDED YOUR GROWTH?

Initially, we worked with banking institutions and took out Small Business Administration and capital equipment loans. We are now funding the projects internally and do not require bank loans.

WILL TOYOTA EXPANSION NEAR GREENSBORO BENEFIT YOUR BUSINESS?

We have been in meetings and panel discussions with Toyota and believe we can add immediate value as a supplier as we produce about 1 million parts annually for BMW for their hybrid vehicles. Our location logistically makes sense with regards to the ecosystem and having Tier I supplier experience. Since 2015 we have been shipping to Germany, China, Russia and South Africa for BMW. Having a Tier I automotive supplier within 30 minutes of the Toyota battery facility would help reduce shipping costs.

IS YOUR STRATEGY TO PURSUE RAPID GROWTH OR MORE SLOW, SUSTAINED ADVANCES?

I expect controlled growth in biopharma, while the mobility space with automotive sustainable materials will be rapid. Our customers are looking for our innovation with sustainable materials like hemp, allowing us to supply parts that are lighter in weight and stronger. This is already being done in Europe, and we want to bring this to North America through our work with BrightMa Farms in Charleston, South Carolina. Three universities are supporting us with research and development: N.C. A&T, Clemson and South Carolina State.

WHAT IS YOUR TAKE ON THE ECONOMY?

Economic experts are predicting a recession, but we are diverse and grew from 5% biological pharmaceuticals to 60% since COVID-19. Our growth is with the biopharma companies including Merck, Pfizer and Eli Lilly, and the heavy truck industry with Volvo and Mack Trucks and Volvo Cars. With our diverse portfolio, we have grown at an exponential rate over the last few years. Snap-on Tool recently became a new customer.

WHO HAVE BEEN YOUR KEY CAREER MENTORS?

Dr. Harold Martin Sr., chancellor at North Carolina A&T State...