Reprinted from Petoskey News Review, Ryan Bentley, February 24, 2021:
2021 brings milestones for Boyne City’s Industrial Magnetics
BOYNE CITY — For one Boyne City manufacturing business, 2021 brings a shift in day-to-day leadership as well as a milestone anniversary.
Bud Shear is retiring from the role of CEO for Industrial Magnetics Inc. and two sister companies effective today, Friday. General manager Craig Scachitti, who joined the company last August, will tend to Shear’s Industrial Magnetics duties going forward.
With a history dating back 60 years, Industrial Magnetics produces magnets used internationally in a variety of industrial applications. The company’s products find their way to businesses dealing in food, mining, metal recycling, metal fabrication, automotive and more.
Shear, who previously worked in the aerospace field, joined Industrial Magnetics 22 years ago as national sales manager. He became a partner in the business within a year or so, and then sole proprietor after another year. Although Industrial Magnetics has undergone some ownership changes since the mid-2000s — with DNS Capital of Chicago having been its primary owner since 2016 — Shear still maintains a minority stake in the company.
During Shear’s time with the company, he has seen it grow by several measures, including some building expansion and corporate acquisitions along the way. Industrial Magnetics has seen annual sales increase from less than $10 million to nearly $50 million in that 22-year time span. The business’ head count stood at less than 60 as of the late 1990s, with staff members now numbering 112 — 88 of whom are based in Boyne City.
Shear credits hard work by Industrial Magnetics’ team as a factor that has helped the company to expand, and said he has enjoyed watching the employees grow in their work roles.
“This is truly my family’s extended family,” he said, noting he’ll miss his frequent interactions with employees on both of the company’s daily shifts following retirement. “These people mean more to me than anyone could ever imagine.”
Shear said he plans to continue living in the Boyne City area following retirement, and anticipates spending more time on hobbies such as boating, skiing and bicycling.
Scachitti said he appreciates Shear’s efforts to position the company well from a workforce standpoint.
“He has sincerely built an outstanding organization of employees who are empowered, know what they doing (and) can
make a decision,” Scachitti said.
Before joining Industrial Magnetics, Scachitti spent about six years with Jordan Industries, an Indianapolis-based private equity firm focusing on manufacturing investments, where he oversaw global operations. Prior to that, he worked for about 20 years in management roles at Illinois Tool Works — a manufacturing company where magnetic products like those of Industrial Magnetics are put to use. Scachitti — whose educational background includes an undergraduate degree in electrical engineering and a master’s in business administration — also gained some engineering work experience in medical operations with Johnson & Johnson.
In pursuing his job at Industrial Magnetics, Scachitti said he saw appeal in a product line which he already had some familiarity with, as well as the company’s culture and its Northern Michigan surroundings.
Schachitti said working alongside Shear in recent months allowed him to concentrate on integrating Industrial Magnetics’ latest acquisition — that of former competitor Walker Magnetics — into the fold while the soon-to-retire CEO tended to day-to-day management needs. A building expansion now in progress at Industrial Magnetics’ plant along M-75 — which will increase the main building’s footprint from 50,000 to 85,000 square feet — will allow for relocation of one of Walker’s operations from Connecticut this spring. With only one Connecticut employee accepting the relocation option offered to workers there, Schachitti said the company will be seeking candidates locally for most of the 40 or so jobs which the expansion will bring.
Although noting it’s too early to discuss specifics, Scachitti said he sees other potential growth opportunities for Industrial Magnetics on the horizon.
Founded in 1961, Industrial Magnetics operated at several different southeast Michigan addresses — in Ferndale, Royal Oak and Detroit — through its early decades before moving to Boyne City in 1985. To learn more about the company, see www.magnetics.com.