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Entrepreneurs

Scott Crump: Making Waves

By Staff Reports, posted Nov 8, 2013

 

 

For former professional surfer Scott Crump, surfing is not just a sport or a hobby, it’s also a business opportunity.

Crump, who has been in the surfboard shaping business for 30 years, is the founder of rtmlite USA, which he claims will be the first surfboard fin manufacturer in the country when it begins operation in November at Brunswick Community College’s small business incubator in Leland.

Surf fins are mounted on the back of the surfboard and help stabilize the board, which allows riders to control the direction they want to go. Fins generally cost about $70-$110, and there are multiple surf fin designs with each having a different purpose. rtmlite will manufacture performance shortboard fins, quad fins and longboard fins.

“We’re going to make the best there is,” Crump said. “There’s a lot of good fins coming out of China, but their hit-and-miss rates are all over the place.”

rtmlite is an offshoot of Arcade Mfg., which sells surfboard accessories such as surfboard, tractions, leashes and fins. Arcade Mfg., of which Crump is a partner, is based in Australia where Crump resided for the past 10 years because of business, surfing and his Aussie wife.

Arcade Mfg. had previously contracted with manufacturers in China, which is where almost all surf fin manufacturing takes place. On frequent visits to China, Crump said he observed harsh working conditions, poor supply chain issues and lack of emphasis on quality.  

“The fin production seems to be the most problematic. We’re having a lot of rejects, and that’s already after they’ve done their QC [quality control],” Crump said.

As to the working conditions, Crump said, “It’s brutal. It’s way out in the middle of nowhere; the working environment is terrible; the people are grossly underpaid.
“The way they deal with production problems is that they throw more people at it, whereas I want to do it smarter − make a cleaner, safer working environment, better machinery and better raw materials.”

Crump first had the idea of becoming an American-based fin manufacturer two years ago at Surf Expo, an annual trade show in Orlando, Fla.

“I met with people that have similar partners and similar companies as Arcade, and they were all having the same issue. So I got on the phone and ended up going to a composites show and met all the key people,” Crump said.

The idea became more tangible in January when Crump developed a business plan and then a feasibility study to determine whether his idea would actually work.

“Everyone was like ‘American-made – that’s going to cost you a fortune,’ but that’s not necessarily true,” Crump said. “A lot of the raw materials come from the United States to China, and then they come back as parts, so we’re eliminating that shipping both ways.”  

rtmlite is also aided by the fact that surfboards are no longer made in the factory with fins, which means that with 1.3 million surfboards manufactured each year, there is a sizeable demand for fins, Crump said.

Crump first had to determine what type of mold rtmlite would use to make the fins as well as what molding process it would implement.

The molding process Crump decided on is based in the origins of the company’s name: Resin Transfer Molding (RTM). RTM is a process that uses molds in two parts so there is more control in the production by allowing the company to implant various materials such as carbon into the fins, Crump said.

He will also change the type of mold, as rtmlite plans to use an aluminum mold rather than a composite mold, which are made of fiberglass and currently used by Chinese manufacturers.

“You can only get 1,000 molds out of a composite mold, whereas with an aluminum mold you can get 10,000, so even though it costs more you’re getting a lot more usage of the molds and a lot higher quality of product,” Crump said.

The aluminum molds will be produced by Wilmington-based Cape Fear Mold & Tool Co., which specializes in high injection molds.

rtmLite is not only looking to be a pioneer in the surfing industry, but it will also be the first business that occupies the Brunswick Community College Business Incubator. The new incubator is intended to help small businesses gain capital as well as create jobs for the community by offering low rent and improved infrastructure.

The company’s general manager, Matt Martin, was formerly employed at Leland-based Flow Sciences. Martin introduced Crump to Jim Bradshaw, executive director of the Brunswick County Economic Development.

“Myself and my partners all agreed that we needed to have an East Coast distribution base,” Crump said. “I always liked Wilmington. I always had fun here, and it’s at the center in the East Coast as far as the surf market.”

Cape Fear Mold & Tool is currently building rtmlite a prototype of the mold the company plans to use in its fins. The mold should be finished by mid-November, Crump said, and then the company will go into production. Crump expects rtmlite to begin full operation in January.

Crump also intends to expand rtmlite into new markets by adding product lines such as fins for standup paddleboards, kiteboards and wakeboards.

Initially, rtmlite will employ six people during its process of making its first mold, but once the company begins its second or third mold, it plans on employing 13-14 individuals. The business incubator, however, is designed for small businesses and only permits businesses to stay there for 2-3 years, which is when Crump will look for a new facility in the region with the possibility of expanding its workforce.

Officials announced state and federal funding for BCC’s facility in September  – $200,000 from the N.C. Golden Leaf Foundation and $200,000 appropriated by Congress and channeled through the U.S. Economic Development Administration.

“At that time this was just in infant stages,” Crump said about the company’s new home. “But we just sort of grew it together because they just got their check as well, and that’s what really got us to get going because their incubation center offers a great facility.”

 

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