HST Materials' Miller takes small company global

HST Materials Inc. has become a small but mighty manufacturer based in Elk Grove Village.

While it has about 12 full-time and 12 part-time employees, it has boosted its products and services beyond just customizing gaskets. That has resulted in garnering customers in nearly 30 industries worldwide.

"We went against the trends because we are not too heavy in any one industry and that's what helped us to get through the tough times in our industry," said HST owner and President Kathryn Miller.

"That's what keeps us level, but we've also added customizing and we've seen growth with that," she said. "And we could always branch out to other industries, possibly to health or aerospace, too."

HST, which was founded in 1987 by her husband, Eric Miller, before he decided to start another company, is a fabricator and converter of rubber, plastic and other materials used as custom seals and gaskets. The company was among the winners for a small-size employer of under 50 employees during the 26th Annual Awards for Business Excellence, sponsored by the Daily Herald Business Ledger, in March. The AABEs showcase successful suburban businesses and organizations and honor its leaders for business achievement, growth and community involvement.

HST apparently is running counter to what is happening statewide in the manufacturing industry.

Manufacturing continues to struggle in Illinois with the industry losing nearly 15,000 jobs last year, said Mark Denzler, vice president and chief operating officer of Illinois Manufacturers' Association in Springfield. HST is not a member of IMA.

"The strong dollar, slumping energy sector and slowdown in certain regions of the world combined with high costs for workers' compensation and unpredictability in Illinois are creating strong headwinds for many companies," Denzler said. "Small and mid-size companies are often part of a supply chain and dependent on a certain sector. Small companies that are part of the auto sector are likely doing well while those affiliated with heavy equipment or energy sector may be struggling."

Back in 1987, Eric Miller was a manufacturer's representative of various companies, including makers of gaskets. While he learned about the industry, he also learned where products were still needed, and decided to start HST Materials.

At the same time, his wife, Kathryn Miller, had worked many years in the public relations industry, including for Margie Korshak, a Chicago publicist in the entertainment field, and her own public relations firm as well. Kathryn decided to set aside her career to help her husband in the HST office.

As HST grew, Eric handed over the ownership and operations to his wife while he returned to selling. That's when he started another company called ESM Technical Sales, which he focuses on full time now.

That was about five years ago when Kathryn became full owner and president of HST. It wasn't always easy making that transition, she said.

"I went from an all-female company to an all-male company," she said. "Some thought that when they came into the office, they should just talk to my husband before talking to me."

Kathryn continued to focus on the company, where it could grow and where it could improve, especially with technology. And for the first time, they earned the ISO 9001 certification, which allowed them to become a supplier to the auto industry in 2003, she said.

"That was huge," Miller said of the certification. "We changed our processes to meet the auto industry standards and we were adapting to a whole new industry."

She also took the necessary training to keep up with the auto industry and other industries to provide the best product for the job.

"I'll never be an engineer, but the industry is changing and you have to know what the customers want you to be and what you can do for them."

Improving operations, technology and standards also allowed the company to gain more business. She said she has been able to maintain 12 full-time and 12 part-time workers even when others in manufacturing had cut employees, she said.

"In order to be competitive, we were very lean and yet we continued to grow," she said.

Besides the auto industry, HST has also sold to the military, transportation, computer, sporting and gaming and many other industries.

"We don't want to be too heavy in any one area, or be too dependent on any one area, so we won't be affected if they have a downturn," she said.

In addition, over the last three years, HST has opened up markets in Mexico, Canada, India, Norway and elsewhere.

HST has recently launched a social media campaign, using her original roots in public relations to help promote her company.

Yet she looks back at how she has transitioned from doing public relations work to owning and operating a manufacturer, and she said it has all been "exciting." She feels she is taking a company her husband founded to a new level.

"It has boosted my confidence," she said. "I still see great things ahead for this company."

When she came on board, she wondered if her husband would be able to let go. "After all, it was his baby. But he loves selling, and I have loved this. I think it's allowed him to do what he loves and it has allowed me to show I could have a second career."

HST Materials: Facts

Founded: 1987

Founder: Eric Miller

President and owner: Kathryn E. Miller

Business: A fabricator and converter of rubber, plastic and tape materials for custom seals and gaskets, die cutting and other services.

Market: About 125 customers in nearly 30 industries worldwide.

Headquarters: Elk Grove Village

Employees: 12

Web site: www.hstmaterials.com

Twitter: @HSTMaterialsInc