Soaring costs, competition hit manufacturers

It can he hard -- but hardly hopeless -- to be a manufacturing company in Massachusetts.

Among the group of 22 Bay State manufacturers considered for inclusion in this year's Globe 100, total revenues last year rose 14.3 percent. But their collective net income fell 46 percent.

Hit with soaring costs for energy and raw materials, but facing fierce competition, many were reluctant to pass those costs on to customers through higher prices.

Still, a handful of companies made big strides last year, especially those working to take advantage of a brand name well known in their industry, and some that made successful acquisitions to bolster their core businesses.

Smith & Wesson Holding Corp. of Springfield, for example, jumped to 28th place on this year's list, from 85th in 2005 as it increased revenues 17.7 percent.

Among handgun aficionados, S&W products like the .44 Magnum and .38 Chiefs Special are legendary weapons. Michael Golden, who became chief executive in late 2004, says the company has a phenomenal brand awareness that it can use to transform itself from a handgun company into one that serves the ''global business of safety, security, protection, and sport."

Golden is leading the company to diversify into long guns such as rifles and to expand handgun sales to law enforcement agencies and the military.

''It's all about the brand," Golden said. ''The company was undermarketed and undermanaged for many years."

Though far less widely known among average consumers, Kadant Inc. of Acton is another company working to exploit its brand identity.

The supplier of paper-making equipment, after recent acquisitions and spinoffs, is looking to present itself to ''the marketplace as a unified brand," chief executive William Rainville said.

Much of Kadant's business is gravitating to China. ''It's hard to find anything in your house that wasn't made in China, and many of those products arrived here in a cardboard box," said chief financial officer Thomas O'Brien. Many of those boxes are shipped back to China and recycled by companies that are Kadant's customers.

During 2005, Kadant sold one company and bought another to better focus on its core business. Kadant, which didn't make The Globe 100 cut a year earlier, vaulted to 52d place this year as revenues rose 25 percent.

Circor International Inc. of Burlington jumped to 36 from 98 on The Globe 100. Revenues rose 18 percent, and net income was up 73 percent.

Circor makes valves and fluid-control products. Circor benefited from strong demand for its products among customers, including energy and aerospace companies, and also said acquisitions helped to add momentum to its growth.

Chris Reidy can be reached at reidy@globe.com.