Hartman Enterprises plans major expansion

ONEIDA — Tucked into a neighborhood in the city of Oneida stands a 25,000-square-foot building, the home of Hartman Enterprises, Inc. The structure is filled with modern computer-numerical-control (CNC) turning and milling machines, routers, grinders, welding equipment, cutters, and a wide assortment of tooling. In fact, there are so many machines that there is no room to expand.

“We’ve outgrown our current space,” says Jaime A. Sweet, Hartman’s president and CEO. “Our [strategic] plan projects a 40 percent to 50 percent increase in business over the next five years, which requires us to operate in 50,000 square feet with a better layout. Our current site doesn’t allow us to expand, so we need to find a location to accommodate our anticipated growth. My preference is to find an existing building on 5 acres that has the infrastructure we need and moderately priced electricity to reduce the cost of our heavy electrical consumption.” 

Sweet, the third generation of the family to operate the company, which produces precision-machined parts, has already begun reaching out to area industrial-development agencies for guidance.

The start
“Terry Hartman and my grandfather founded Hartman Enterprises in 1972,” says Sweet. “He started out as a toolmaker at New York Air Brake in Watertown and moved to Utica to work with Bendix [Corp.] as an electrical project engineer, all while getting his MBA at Utica College [of Syracuse University]. Grandfather created Mohawk Industrial Labs, a machine shop in Vernon, before joining Terry Hartman. The two acquired Hinman Milking Machine Co. to make parts for milking machines and feed carts in the area before Hartman sold his interest to my grandfather. What began as a modest business serving the agricultural sector has blossomed into a manufacturer now serving the oil and gas, electrical-equipment, power transmission and generation, transportation, and fire-arms industries, to name just a few.”

Sweet gives credit to her father, Robert E. Sweet, Jr., for setting the company on a growth path. “Dad joined Hartman when he was 19,” she notes. “He didn’t attend college; [rather] he immersed himself in the business first as an apprentice to toolmakers, including my grandfather. He also received a certificate in welding and took multiple classes on manufacturing. It was his persistence that introduced the first CNC machine into the operation, and he taught himself how to program the unit, called a Mori Seiki. When dad joined the firm in the 1970s, the business operated one shift with six employees. The company now employs 45 and runs two shifts. In his more than three decades running the company, my father added 15,000 square feet to the original building to accommodate the growth to our current level.” 

CNYBJ estimates Hartman’s annual revenue at $8 million. The corporate stock, which owns the operating company and the real estate, is held by the Sweet family.

Growth plans
Sweet has set out aggressive plans for growth. “I am in the process of applying to New York State for certification as a woman-owned business enterprise (WBE),” she states. “The benefits of certification include being listed on the state directory of certified businesses, access to procurement opportunities with state agencies and authorities, receiving alerts for upcoming procurement opportunities, access to lending and borrowing programs set aside for WBEs, and access to a statewide network of services and support. The WBE certification should also open doors to large corporations, which have similar outreach programs.”

The New York State program is operated by Empire State Development’s Division of Minority and Women’s Business Development. The program is designed to promote equality of economic opportunities for minorities and women to eliminate barriers to participating in state contracts. According to the 2014-2015 division annual report, of more than $7 billion spent by state agencies and authorities in that fiscal year, about $900 million was contracted to WBEs. In October 2014, Gov. Andrew Cuomo increased the participation-rate goal for minority and women-owned businesses to 30 percent. When he took office, the rate was 10 percent. 

Hartman is also located in a HUBZone, set up by the U.S. Small Business Administration (SBA) for small companies that operate and employ people in a historically underutilized business zone. The primary goal of the program is to provide incentives for the federal government to contract with businesses operating in these zones.

“I believe the certifications will open up business especially from the Department of Defense and from the aerospace industry,” says Sweet. “These two sectors have the potential for substantial additional sales. Hartman is working now on being certified to work in both sectors. We are also seeing increased orders from the transportation and firearms sectors, which are both growing and offsetting decreases in oil and gas. Our continuing drive to diversify our markets is the main focus to grow our sales by 40 percent, which will necessitate an increase in employment of more than 20 percent.”

Sweet attributes the firm’s success to its staff. “Hartman has a very skilled workforce,” asserts the company CEO, “which is our biggest asset. Many of our employees have been with the company for more than a decade, and their accumulated skills allow us to create incredibly tight tolerances and consistency in the parts we produce.” 

The management team includes Sweet; Jim Rager, the general manager, who joined Hartman in 2014; a shop-floor manager; process-controller engineer; and a night-shift supervisor. Sweet also acknowledges the contribution of outside professional firms that support the company: M&T Bank and Community Bank for financial services; Hancock & Estabrook, LLP for legal advice; D’Arcangelo & Co. LLP for accounting; and Nathan G. Hanna, LLC for investment and retirement services.

Hartman’s continued success depends on finding and hiring talented employees. “This is my biggest concern,” contends Sweet. “We have no problem retaining employees, but it’s a challenge in this area to find skilled employees with a strong work ethic. This problem is already … [inhibiting] the rate at which we can grow. I have reached out to BOCES and SUNYIT (now SUNY Polytechnic Institute) through open houses to attract their STEM (science, technology, engineering, and math) students. The next step is to offer internships. There is a lot of competition for talent in this area, so we need to be aggressive in identifying potential new hires.”

Sweet’s ascension to the Hartman presidency in May 2014 was accelerated by the untimely death of her father who passed away at the age of 58. “This business was always my home,” says Sweet. “For years, I worked at Hartman alongside my father, and we shared not just the details of the business but also his vision. Even though I pursued a career in nursing and became a nurse-practitioner, I always knew that someday I would run the company. After dad became sick, we talked at great length about the … [succession]. As difficult as it still is to deal with his passing, I felt prepared to ensure the continuity of Hartman.”

Jaime Sweet grew up in Oneida. She earned her associate degree in nursing and an associate degree in math and science from Mohawk Valley Community College in 2004. In 2011, Sweet earned a bachelor’s degree in nursing and a master’s degree as a family-nurse practitioner. She has also taken business courses at Morrisville State College. Sweet resides in Frankfort.