Privately Held Suppliers Offer Unique Advantages to Manufacturers

In a sluggish market, manufacturers need suppliers for timely delivery, quick adaptation, and high-quality standards. Privately held suppliers offer advantages over those under private equity or group ownership, providing stability and long-term support. Free from the pressures of servicing debt burdens or short-term investor demands, they are better able to focus on sustainable growth and reliable delivery. Their adaptability makes them an especially ideal fit when an existing supplier falls short and needs to be replaced. Privately held suppliers, like New Berlin Plastics, can seamlessly integrate, ensuring smooth transitions and preventing costly production delays.

Attracting and Retaining Skilled Talent

Privately held suppliers gain an advantage by investing in their employees for the long term, which helps them attract and keep top talent. This focus on developing employees ensures teams are committed and skilled, leading to consistent operations and high-quality results. Unlike large corporations or private equity-owned suppliers, where employees might feel overlooked, face unstable job security, or must meet short-term financial goals, privately owned companies often inspire strong loyalty.

“Many private equity-owned suppliers are refinancing their debt in a much higher interest rate environment and currently lack the capital to reinvest in their organizations—whether that means attracting and retaining workers or upgrading technology—while also meeting investors’ expectations for returns,” said Karl Held, business development manager at New Berlin Plastics.

Strategic Investment in Technology

Privately held suppliers can distinguish themselves in the realm of technology investments, offering another advantage for their manufacturing customers. With the ability to adopt a long-term strategic perspective, these suppliers prioritize advancements in equipment, robotics, and processes that enhance efficiency and quality metrics. In contrast, suppliers under private equity ownership may delay such investments, focusing instead on safeguarding short-term profit margins or facilitating ownership transitions. This freedom from immediate financial pressures allows privately held suppliers to allocate resources towards innovations that deliver tangible benefits to their OEM partners, positioning themselves as invaluable assets in the supply chain ecosystem.

Agility to Respond Quickly

Another advantage of privately held suppliers is operational flexibility. These companies can swiftly implement strategic adjustments, such as integrating automation systems to address labor shortages or modifying production schedules to accommodate unexpected demand spikes. In contrast to private equity-backed suppliers—which may encounter limitations due to refinancing timelines or complex decision-making structures—privately held suppliers possess the capability to respond immediately with flexible manufacturing solutions. This agility helps OEMs stay on schedule, meet industry standards, and maintain operational efficiency.

Aligned Incentives and True Partnership

Privately held suppliers offer a unique advantage through their alignment with customers’ successes. Free from investor pressures or short-term exit strategies, they can make decisions that prioritize manufacturers’ best interests. This flexibility fosters open communication, adaptable solutions, and collaborative problem-solving, creating partnerships that are responsive, reliable, and built for long-term success.

“We’re always looking to build long-term and mutually successful relationships,” Held said. “There are private equity-owned companies that have that viewpoint as well, but many prioritize a return for their investors. We want to be a great supplier for decades, and that’s why it’s important for us to invest in our capabilities, our people, and our relationships.”

New Berlin Plastics: Your privately held custom plastic injection molding partner

In today’s demanding manufacturing environment, stability, agility, and long-term investment are more important than ever. Privately held suppliers like New Berlin Plastics offer these advantages, helping OEMs keep supply chains adaptable, reliable, and ready to grow—even during market downturns. By partnering with privately held suppliers instead of those owned by equity groups, manufacturers gain access to advanced technology, experienced talent, and rapid responsiveness to changing needs. This approach ensures consistent, high-quality results and builds strong, lasting partnerships that support long-term success in the manufacturing sector.

If you need stability, long-term partnership, and flexible manufacturing solutions, we encourage you to reach out. Whether you’re scaling production, transitioning from another supplier, or launching a new product, New Berlin Plastics is the custom plastic injection molding partner that can make the process smoother, faster, and more reliable.