PEORIA MAGAZINE September 2023

Zika said the company, though not a household name, is well known and regarded by manufacturers intent on sustainable alternatives and solutions. “Fashion brands are aware if you want sustainable materials, you have to give NFW a good look,” Zika said. ‘THERE COULD BE A VISION OF

“they’re going to be a greater part of the regional economy.” GROWING PAINS NFW’s path forward has included a few bumps. The company had expected to have 300 employees by year’s end, 2022. That did not happen, and twice so far this year — in April and in July — NFW trimmed its workforce by 10%. Zika points to a recalibration of business priorities. “We grew really, really fast,” he said. “As the company evolves, you need different types of skills.” According to the Turner Center, NFW had $3.4 million in international sales last year. Zika declined to further discuss company finances, but conceded that the company is still operating in the red, though on a trajectory toward profitability. NFW IS ON A TRAJECTORY TOWARD PROFITABILITY, BUT FOR NOW, ‘WE DEPEND ON INVESTORS’ — Steve Zika “We’re not a cash-flow-positive com pany,” he explained. “We depend on investors.” As for next steps, Zika said NFW is working on newer textile materials. But the biggest thrust will be expanding production to meet market demands. The global leather market is $100 billion, the synthetic fibers market approaching $70 billion. Opportunities are increas ing for sustainable alternatives. “There are significant levels of scale we need to achieve,” Zika said. “What’s next for NFW is a long path to achieve that growth. We have a lot of hard work to do over years and years.”

THIS COMPANY THAT HAS 3,000 PEOPLE, MAYBE HALF IN PEORIA’ — Steve Zika

With most finished garments made overseas, especially in Asia, exporting was inevitable for NFW. For example, the shoe company Unless is based in America but the footwear is cobbled together in Italy. Therefore, though NFW is dealing with a U.S. firm, the materials are sent to the Italian manufacturer. For BMW, which has multiple factories in multiple countries, NFW ships seat making materials to the automaker’s factories in America and Germany. “In one case we’re exporting. In one case we’re not,” Zika said. A PEORIA BASE, A GLOBAL REACH As NFW’s outreach expands, the com pany likely will establish manufacturing points overseas, likely by partnering with existing factories. That way, NFW can reduce shipping costs. Such growth will help the company at all points, Zika said. NFW has a workforce of “more than 200,” Zika said. Though a smattering of employees are stationed outside Peoria — including locations in California, New York, Europe and Vietnam — 90% of its workforce is in central Illinois, Zika said. That percentage could change, but not to Peoria’s detriment, Zika said. “There could be a vision of this com pany that has 3,000 people, maybe half in Peoria,” Zika said. “That’s a good thing. It creates more jobs locally. “The best version of NFW is a global company that has employees around the globe.”

Production underway at Natural Fiber Welding

Even under that scenario, the plan is to keep Peoria as NFW’s base, Zika said “The company is not spending any time looking for a new headquarters,” Zika said. That’s likely music to the ears of many here in central Illinois, especially after comments published in the Journal Star about a year ago seemed to hint that NFW might be looking elsewhere. Asked then if NFW intended to stay in Peoria, Haverhals raised eyebrows by suggesting the decision could be determined by local officials and inves tors. Though not offering specifics, he urged local leaders to “think about the structural things that need to be fixed around here” before adding: “What I’m offering to Peoria is an ongoing dialogue just like I have an ongoing dialogue with my wife daily about the things we need to do together to stay happily married.” Those who may have interpreted that as a commentary on the NFW-Peoria marriage can relax, indicated Zika. “I think it was an invitation to be collaborative and creative,” he said. “I think it was a challenge.” Setti said Peoria intends to remain hospitable and helpful to NFW. “We talk to them all the time: what’s their future and what they need,” said Setti before expressing confidence that

Phil Luciano is a senior writer/columnist for Peoria Magazine and content contributor to public television station WTVP. He can be reached at phil.luciano@wtvp.org

36 SEPTEMBER 2023 PEORIA MAGAZINE