PASCO Highlights

  • 1920 Company founded
  • 1961 Company bought by Carborundum
  • 1983 Company bought by David Yeager.
  • 1988 Company begins manufacturing abrasive belts, disc & rolls.
  • 1995 PASCO purchases equipment to manufacture up to 175,000 disc per day.
  • 1995 PASCO pruchases high propduction belt making equipment.
  • 1999 PASCO moves to current location.
  • 2002 To meet increasing PSA disc sales PASCO adds hot melt line.




History of Pacific Abrasive

Pacific Abrasive, was founded in 1920 as a distributor of industrial supplies such as abrasives, cutting tools & carbides selling to manufacturing plants throughout the State of California. With multiple locations Pacific Abrasive grew to become one of the largest distributors of industrial supplies in the state of California.

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In 1983 Pacific Abrasive was purchased by Mr. & Mrs. David Yeager who Incorporated the company in July, 1983. Mr. Yeager had worked for the previous 27 years for the Carborundum Company in various sales/marketing management positions including General Sales Manager, Abrasive Marketing Division with responsibilities for all sales of bonded, coated and abrasive grain in the United States. The company was moved to Buena Park, California into a modern 25,000 square foot facility, doubling the space from the previous location. Mr. Yeager then purchased a $125,000 computer system, doubled the size of the sales force, and set objectives that resulted in Pacific Abrasive increasing their sales more than 100% over the next four years.

In 1987 Mr. Yeager did an evaluation of Pacific Abrasive, its strengths, its weaknesses and potential future as an industrial distributor which consisted of profits gained from buying products and reselling those products to industrial manufacturers in California. For the most part he did not like what he saw, high fixed overheads, low gross margins, a volume sensitive business, high inventories with high obsolescence of inventory. Simultaneously Mr. Yeager also evaluated his suppliers and competitive distributors.

Pacific Abrasive suppliers were major names in the industry, but all had their own set of problems with a shrinking industrial market, high overhead, negative real growth with declining market share because of imports and the ability of smaller companies to provide quality products with quicker deliveries at a lower cost. Many suppliers were on the market actively seeking potential buyers. Pacific Abrasive competitive distributors were in a similar position, but many lacking the financial strength of Pacific Abrasive, either went out of business or sold out to other distributors. This was true from the very smallest of distributors to the very largest distributor in California which was acquired by a manufacturing company.

A decision was made that if Pacific Abrasive was to survive, grow and be a highly profitable business it needed to:

  • Change its core business, very slowly, from that of a distributor with low gross profits, to a manufacturer of coated abrasive products offering quality products, lower prices and quicker delivery, all with higher gross margins to Pacific Abrasive.
  • Expand the customer base to include sales to competitive distributors which were interested in improving their profit margins and reducing their inventories while giving quicker deliveries to their customers. (Pacific Abrasive offered equal quality at 20% lower costs and 24 to 72 hour manufacturing time compared to 4 to 6 weeks from other manufacturers.)
  • Expand its geographical sales from just selling in California to selling across the United States, with the initial effort to be in the 13 Western States.
  • To reduce selling effort on all but the most profitable product lines and to focus attention on the specialized field of Coated Abrasive Products.
  • To redirect the capital invested in other product lines to help finance the inventories required in Jumbo Rolls of Coated Abrasives for the manufacturing of belts, disc, sheets & rolls.
  • Infuse the Company with $600,000 of new capital to purchase all the machinery and to help finance Pacific Abrasive through the initial years of this transformation.

With the business plan now in effect it was now a matter of execution. Machinery was selected and deposits made in 1988. The first finished products came out of the manufacturing facilities in November 1988, with three people working in the plant.

Pacific Abrasive now employs 55 people compared to 26 in 1988. Sales of Coated Abrasives account for 99.0% of total sales, with distributors throughout the United States. Pacific Abrasive now has the capacity to manufacture 125,000 narrow belts, 4,200 wide belts and 500,000 disc a day.

In 2001/2002 PASCO purchased over $1,100,000 of capital equipment. This investment included a hot melt coating line to enhance our PSA disc manufacturing capabilities.