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Another generation at plastics business

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Cindi and Alan Heyen continue in the mold shaped by Don Telesca.

Mr. and Mrs. Heyen, of Old Forge, acquired Northeastern Plastics Inc. in Scranton after Mr. Telesca died last June at age 84. He ran the company until shortly before his death.

"It was like a natural progression for us," said Mrs. Heyen, a daughter of Mr. Telesca, an Old Forge resident whose career in the plastics industry spanned more than six decades.

Mr. and Mrs. Heyen operated an associated business, JED Pool Tools Inc., at the same location as Northeastern Plastics.

But when Mr. Telesca died, the future of the company he established in 1982 was at stake.

"It would have been difficult to sell the business as it was," Mrs. Heyen said.

She and her husband bought the interests of Mrs. Heyen's sisters in Northeastern Plastics and now operate it together with JED Pool Tools. The plant employs 28 full-time workers.

"Keeping Northeastern Plastics' name out there is important," Mrs. Heyen said as she sat in an office at the 90,000-square-foot former Morris White Fashions pocketbook factory at Penn Avenue and Poplar Street. "I'm proud to keep it going."

Although family businesses are an exalted bedrock of American tradition, many wither between generations.

Fewer than 60 percent of family companies pass to a second generation and only about one-seventh reach a third generation, said Dick Kane, president of Kane Is Able Inc., a Scranton-based logistics provider.

"It's hard to go from generation to generation," said Mr. Kane, who represents the third generation of his family at Kane Is Able and is also an executive in residence at the Wilkes University Family Business Forum.

"Family businesses get so wrapped up in the business that they don't do the planning. They avoid that item because it's an emotional issue."

Patrice Persico, who headed the Family Business Forum when it was located at King's College in Wilkes-Barre, knew Mr. Telesca. She said Mr. and Mrs. Heyen probably felt some apprehension taking over for an acclaimed figure in the plastics industry.

"It's tough to follow a giant's footsteps like that," Ms. Persico said. "That's probably one of the hardest things to hurdle."

One of the first tasks the Heyens undertook when they acquired Northeastern Plastics was conversion to an electronic office system to maximize efficiency and control costs.

Mrs. Heyen concentrates on accounting and inventory functions and Mr. Heyen handles sales and oversees production. Both hold engineering degrees.

When Mrs. Heyen saw an office worker scrawling figures on paper after the takeover, she asked, "Why are you writing down inventories like that?"

Because Mr. Telesca liked it that way, the employee responded.

"They didn't use the accounting system we have for inventory control," Mrs. Heyen said. "My dad was old school."

Mr. Telesca started his career in synthetics as an office boy in the 1940s at Consolidated Molded Products, the Scranton company credited with manufacturing the first plastic toys. He rose to sales manager before Consolidated Molded closed in 1981. He and a partner established Northeastern Plastics, which manufactures injection-molded products, including automotive parts, locker handles, armrests, color sample chips and ladder components.

"When he lost the best job he had, he took action and started a company that succeeded beyond his dreams," Mrs. Heyen said.

He acquired JED Pool Tools in 1989, and Mr. and Mrs. Heyen came on board to run the company, which manufactures swimming pool supplies, such as skimmers, chlorine dispensers, hoses and vacuum parts.

The Heyens learned about thrift from Mr. Telesca and bought JED in 2005.

"He taught me great business sense," Mrs. Heyen said. "Don't overspend or waste. Always check pricing. We still use some of the folders from years ago and just relabel."

After her father's death, Mrs. Heyen found a note in Mr. Telesca's desk from a female employee thanking him for continuing to pay her even though she had missed an extended period of work because of illness.

"He could be gruff, but he was really good to his employees," Mrs. Heyen said. "He appreciated them and they appreciated him."

Family businesses stand apart because they are responsive to their employees and communities, Mr. Kane said.

"Businesses that are publicly traded are really focused on quarter-end results. Their objective is to please the shareholders," he said. "Family businesses typically have a longer view."

Contact the writer: jhaggerty@timesshamrock.com


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