Arrow Lock downsizes plant, completes transformation of firm

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Wednesday, October 1, 2003

HICKSVILLE, N.Y. - Two years ago Arrow Lock began slowly migrating away from producing locking parts at its own facility to outsource that work to its Assa Abloy sister companies.

This month the final step takes place, when the company downsizes its facility and moves from its 250,000-square-foot manufacturing plant in Brooklyn, N.Y., to a 60,000-square-foot location here where Arrow Lock will now assemble and warehouse its products.

“We’re changing our type of operation,” said Charles Armstrong, president of Arrow Lock. “Being part of Assa Abloy, we have numerous manufacturing facilities around the country and around the world. You start looking at synergies within the company and there are a number of companies that we could outsource some products to.”

Some of the company’s product part manufacturing has moved to Assa Abloy facilities in Connecticut and Mexico City, said Armstrong. Over the span of two years, the company has also decreased its workforce from 300 people to 70 employees, both through layoffs and early retirement.

“We’re combining synergies,” said Armstrong. “The other facilities, where we moved product, picked up people.”

The manufacturing change is expected to help Arrow Lock increase its efficiencies since it will now use more modern and efficient manufacturing equipment available at its sister companies. Company officials also expect faster turnaround of product parts made in nearby Connecticut, while Arrow Lock will increase its stock level on parts made in other areas.

The move to the new location is expected to save Arrow Lock money in the long run, not just in leasing costs, but also transportation expenses. Armstrong said the Hicksville office is located 20 miles from the company’s previous Brooklyn headquarters, but is closer to major highways.