SHERBURNE — “Nothing gives me cardiac arrest anymore,” says Robert W. Tenney, president and CEO of Mid-York Press, Inc., a printing and packaging firm located in Chenango County. Tenney rolls his eyes as he thinks back to his first day as president of the Sherburne–based business in November 1982. At age 23, and just six […]
SHERBURNE — “Nothing gives me cardiac arrest anymore,” says Robert W. Tenney, president and CEO of Mid-York Press, Inc., a printing and packaging firm located in Chenango County.
Tenney rolls his eyes as he thinks back to his first day as president of the Sherburne–based business in November 1982. At age 23, and just six months after graduating from Syracuse University (SU), Tenney was brought into the family business to rescue Mid-York Press, then generating annual revenue of $1.5 million. The balance sheet resembled a grade-B horror movie: payables, $385,000; receivables, $80,000; cash on hand, $12,000; payroll due that week, $24,000.
Chemical Bank came to the rescue in the short term. Mid-York, which already owed the bank $500,000, received an additional $250,000 loan to keep the company afloat. “What did I know about running a company,” says Tenney. “I wanted to be a drama major and ended up with a psychology degree. I washed out of the management school at SU three months after taking the helm [at Mid-York], our biggest customer, Norwich [Pharmacal], put our printing contract out to bid. At that time, Norwich represented 90 percent of our business. I told them if I lost the contract, Mid-York would be bankrupt. Norwich left the label and carton printing with us and gave another vendor the rest of the printing.”
Tenney spent the next five years reorganizing the company and developing sales. “I lost 35 pounds juggling sales, operations, and keeping the customers and creditors happy. I would come home at night and just fall asleep in a chair. The next morning, I would be back in the office before anyone else, scheduling the day’s production. Then I would leave the plant and spend the day selling. At the end of the day, I returned to review operations and then do the billing.”
Tenney’s goal in the first five years was to find a buyer for the business. In 1987, when Mid-York Press was profitable and had a strong cash flow, he changed his mind.
Today, the business is a specialized supplier of paperboard packaging with a focus on the cosmetic and pharmaceutical industries. About 90 percent of the company’s business is comprised of commercial packaging, which includes folding cartons, boxes, cut labels, and inserts. The remainder is commercial printing.
Mid-York employs 80 at its Sherburne headquarters and generated sales of $15.1 million in fiscal-year 2012. The facility includes two buildings comprising 70,000 square feet, and the company leases another 4,000 square feet for paper storage. The plant runs two shifts, consuming 500 tons of paper every month.
“Our customer list includes national companies such as Alere, Inc. (formerly Inverness Medical Innovations, Inc.), Corium, International, and G & W Laboratories” says Tenney. “These long-term customers represent a major portion of Mid-York’s sales,” he says.
Today, however, the firm’s number-one customer is Greek-yogurt maker Chobani, with operations in Chenango County and Idaho. “Our sales with Chobani are up 300 percent since 2011 …We manufacture packaging for their 32 different flavors … Chobani chose us for our commitment to quality and our flexibility [in scheduling],” Tenney notes.
While proudly citing Mid-York’s customer base, Tenney also notes the loss of a long-time customer — Skaneateles–based Welch Allyn. “The [federal] government’s new 2.3-percent gross-receipts tax on domestic medical-products manufacturers forced Welch Allyn to move its package printing to Mexico, where the tax does not apply. Because of Obamacare, I lost an account that generated $662,000 last year,” Tenney says.
Tenney’s success in rescuing Mid-York is in large part attributed to his constant focus on productivity. Even in the dark days of 1982, “I quickly made the decision to invest some of the Chemical Bank loan into equipment, purchasing a step-and-repeat machine to make printing plates. The investment saved the company $2,000 on every order.
“In 1987, I plunged headlong into the computer age, while it was still in its infancy. Since 2008, with interest rates at historically low levels, the company has invested $12.2 million in printing presses, gluing machines, die cutters, folders cutters, and the pre-press department,” Tenney says. “All our machinery is new. I like to replace our equipment every 10 years. I would rather take the depreciation from investing than pay taxes [on profit to the IRS].”
Mid-York’s financing has come largely from GE Capital, Wells Fargo, M&T Bank, and First Niagara. The company’s accounting work is handled by D’Arcangelo & Co., LLP from the Rome office. Tenney’s sister, Claudia, handles most of the legal work for Mid-York.
The executive team that manages Mid-York includes Tenney as CEO; Patrick W. Dowdall, vice president and COO; and Shawn M. Aikins, vice president and plant manager.
Tenney, now 54, looks back on his 31 years at the helm of Mid-York with pride and a sense of humor. His maternal grandfather, Robert Roberts, started working at the company in 1925 when it was called the Hamilton Republican, a local newspaper founded in 1828, and soon after acquired it. In March, 1946, the paper merged with the Morrisville Leader and the Earlville Standard to form the Mid-York Weekly. In October of the same year, the new publication purchased the printing presses of the Norwich Pharmacal Company and incorporated as the Mid-York Press.
“Legend has it that Tom Dewey, who was campaigning for governor of New York, brokered the deal that gave Mid-York the Norwich Pharmacal presses and a 10-year contract,” says Tenney bemusedly. “The two-page contract stated that Mid-York would be compensated for their printing costs plus 20 percent. In turn, the governor supposedly received a substantial campaign contribution, which was obviously not mentioned in the contract.”
Tenney lives in Sherburne with his wife, Rosemarie, and four children. The couple is celebrating 25 years of marriage.
Tenney’s contribution to his family and the village of Sherburne is a thriving business and major employer. He has not only continued the family’s 88-year legacy, but also taken it to new heights in innovation and quality.
Contact Poltenson at npoltenson@cnybj.com