Crane Paper Ends Downsizing With New U.S. Currency Paper Demand
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According to an article late this past month (November 28) by The Record, Troy, N.Y., USA, changes at Crane (Boston, Mass.) which has been the sole supplier of currency paper to the federal government since 1964, have come about due to the constantly evolving nature of global currency. Currency paper has become heavily dependent on technology as counterfeiting has gotten more sophisticated. Countries have responded to this problem by embedding increasingly sophisticated, state of the art security features into bank notes.In the U.S., the currency market is now expanding. In October, Crane signed a five-year contract — the longest in company history — to remain the sole supplier of currency paper for the federal government. In 2013, following a two-year delay due to an unanticipated creasing problem, Crane released the revamped $100 bill, which Richard Rowe's (photo), president of U.S. Government Products at Crane, said is now the most distributed bank note in the world.
According to USA Today, the next generation of American currency bills, which will feature a woman on the $10 bill for the first time since the 19th century, will see the most "complete overhaul" of U.S. currency in almost 100 years. The new bills are expected to include a number of security features, some of them secret, along with additional items like tactile features for the blind. The new currency and the need for a quick and seamless introduction will also add to the company's business including a need to hire.
"Counterfeiters are becoming more and more sophisticated," explained Rowe. That requires more advanced products. So Crane has slowly moved over the years from a traditional papermaker to a high-tech manufacturer of progressively non-pulp based paper substrate (the material that currency is printed on) and security features that are generally made in the company's Dalton, N.H., facility.
Substrate for today's currency is made predominantly of cotton and linen as opposed to containing a high amount of tree fiber pulp. This is now and for some time to some degree been the traditional foundation of U.S. currency paper, but it is high-tech enough in Crane's most recent substrate design to hold the brand new technology for the security features that are woven along with more linen and cotton fiber into the paper.
Crane still manufactures the substrate used for currency paper in Dalton, but the company’s security thread production and research and development are done at its plant in Nashua, N.H. Crane conducts fundamental research on micro-optics technology at another company facility in Alpharetta, Ga. Crane also has a fourth facility in Tumba, Sweden, that manufactures traditional pulp and paper, prints bank notes, and houses the company’s international sales team and design services. Crane’s currency operations maintain 350 employees in Dalton, the second-highest among that division’s four plants (375 are employed in Sweden, with 150 split between Georgia and New Hampshire).
When Stephen P. DeFalco was hired as Crane’s CEO in 2011 from a life sciences company in Toronto, Que. Canada, more than half the company’s revenue came from foreign operations. DeFalco was brought in to help Crane continue to expand globally, company officials said at the time. Moving Crane’s global headquarters from Dalton to Boston, Mass., in 2012 was also done to make business operations more accessible to the international market.
"From a profile point of view for the international business it’s more recognizable," said Craig Conrad, Crane’s director of communications, regarding the decision to move the global office to Boston. The Boston office has only 10 to 12 employees.
"It’s also easier for customers to come visit us," Conrad added. "We can bring them into Boston, and a lot of them will want to visit Nashua. They can get a sense of where we are going. We can talk a little bit about the extension of our micro-optic security feature technology."
"The town hall I’m sitting in was originally a gift to the town from the Crane family," said Dalton, N.H, USA, Town Manager Kenneth E. Walto. "They were very philanthropic."
Walto referred to Rowe's comments on the Crane currency division’s commitment to the area as "good news for the town and Berkshire County, they’re still almost the (top) manufacturer in Berkshire County," Walto added.
But from some of the town’s perspective, Crane appears to be "downsizing," Walto said. The company recently sold the Stationery Factory on Flansburg Ave. along with property at Asheulot Park in Dalton. Crane also has begun putting large tracts of undeveloped land within Dalton on the market and has donated 685 acres of undeveloped land to the community it feels close to.
Walto said the town has "made some inquiries" into Crane’s recent selling spree, but he isn’t worried about the practice, especially considering positive new developments in Crane's business and a need to expand once again. In response to a reduced paper demand from the U.S. Bureau of Engraving and Printing, Crane in early 2014 instituted a voluntary retirement incentive for 8% of its local currency workforce.
"We feel really good that everyone who was downsized was allowed to retire early," Rowe said. "We’ve added back about 15 to 20. We’re probably going to add a few more. We are growing," he said, referring to Crane’s new currency contract with the U.S. government.
He said Crane has been working with Berkshire Community College and McCann Tech to specifically find local employees who fit their qualifications, demonstrating their commitment to the community's economic prosperity.
"We’ll work with our employees to develop their talent," he said.
Rowe has heard rumors that Crane is more interested in developments outside of the county than inside of it.
"I grew up in Dalton," he said. "My dad worked for Sprague. I raised a family here. This is a strong business, and I certainly have a great incentive to continue and make sure these jobs stay in the Berkshires. That’s what helps me get up every morning and drive here."
