Tim Duvall, president of Neo Medical Inc., says the decision to move his company's manufacturing operations from Fremont, Calif. to Sparks allows Neo Medical to reduce its fixed costs by as much as 40 percent and also allows staff to concentrate on boosting marketing, sales and product development efforts.
Neo Medical, which has begun operating out of a 9,500-square-foot space on Greg Street, has two main business lines: a primary line of equipment that helps medical personnel introduce catheters in neo-natal and small pediatric patients, and a secondary line of needle products its sells to other manufacturing firms.
Several workers from the Fremont operations are expected to make the interstate move, and Neo Medical expects to hire five to six new people in various capacities, from manufacturing and assembly, through engineering and quality control, Duvall says.
The launch of several additional product lines at the end of 2011 additional catheter-introducing concepts for neo-natal and infant care are expected to help Neo Medical grow to as many as 18 employees by the end of 2013 with 10 to 20 percent annual growth in future years.
"I'm a very conservative planner," Duvall says.
Being in northern Nevada also allows the company to maintain current pricing structures and continue to manufacture its products in the United States at margins similar to overseas competitors, Duvall adds.
Paul Perkins of Perkins Company Nevada assisted Neo Medical with lease negotiations on its new headquarters building, and Stan Thomas of the Economic Development Authority of Western Nevada helped Duvall with the intricacies of moving his business to northern Nevada.
EDAWN is working on providing tax abatements and training incentives for the company.
