Samples of Company Profiles
Written by Fred Noer

HCA Industries

The Roadster Shop

Nortech Systems

USA Harness

HCA Industries in Denton, Texas
Wiring Harness News, September-October 2006

One fact makes HCA Industries different from hundreds of other companies that produce wiring harnesses and cable assemblies: It is only a year old.

While most other harness and cable manufacturers were established decades ago, HCA was started in September 2005 by Angela and Brian Emert. The firm is located in Denton, Texas, a city of approximately 81,000 people 30 miles from downtown Dallas.

And, although many harness and cable businesses are struggling, HCA is thriving. By the end of this year, the company expects to hit nearly $3 million in sales.

The figure exceeds the expectations of the Emerts, since their five-year plan forecasted such sales in their third year. By the close of 2007, they want to see $6 million in sales. Such a number is not unrealistic, since in the summer the business grew steadily. Depending on purchase orders, this fall HCA may double sales every month and have profits of 30 to 40 percent.

Why are the Emerts, who solely own HCA, doing so well? Two words describe the couple's business philosophy and practice - opportunity and aggressiveness. Then add two more - analysis and automation.

"We keep looking for opportunities, and we're finding there are a lot of them," said Angela, 44, the CEO. "You can have a lot of customers if you do quality work in a timely manner. Doors keep opening because we've shown what we can do."

To take advantage of - and even to make - opportunities, the Emerts have adopted and maintained an aggressive attitude. "We are very aggressive in our business practices," said Brian, 39, the president. "I think the struggles of a lot of cable houses are because they are not aggressive enough. If our phone is not ringing, we make calls so it does ring. If we're not quoting, we figure out how to make it happen."

Analysis figures into the two previous characteristics, and it applies to one of Angela's primary duties as the financial expert. Her background includes 25 years working as the chief financial officer of several manufacturing companies in the Dallas-Fort Worth area.

"I look at a production line and figure out the labor and material costs," said Angela, who has degrees in accounting and business law. "I also do feasibility studies and look at the profitability of our customers."

Analysis obviously was foremost in conceptualizing the business, which began production last December. The Emerts concluded they could not create and capitalize on opportunities and be aggressive without automation.

"In our business concept we realized that for us to compete with other companies and Mexico, our quality had to be superb and our costs extremely competitive," Brian said. "And the only way we could do that was with automation. It minimizes overhead and increases quality significantly."

HCA has more than $700,000 in assets, according to Angela. They include equipment from ShinMaywa, Schleuniger, Molex, Tyco and Cirrus.

Equipment is vital to HCA because it specializes in thin wires and long runs, with one customer requiring one million pieces a month. "One thing that got us started was a project nobody else could handle," Brian said. "It was 34-gauge wire and high volume. We were lucky to fall into it, and we look for more opportunities like that. We enjoy high volume because then we can justify the cost of our equipment and be competitive in our pricing."

Businesses in the petroleum equipment industry provide 75 percent of HCA's sales. Companies making test equipment contribute 20 percent, and the five-percent balance is in RF and transportation. HCA has 10 customers, with three accounting for most of the sales. The number of different products is 200-300, Angela related. All are custom.

"We want a lot of diversity in our products because what if petroleum takes a nosedive?" Brian said. "We're nervous at 75 percent. We'd be OK at 40 percent." HCA also can serve industries such as aerospace, aviation, communication, computer, defense, environmental, gaming, medical, power management, robotics, telecommunication and utility.

A simple application of an HCA product is an LED light on a semi trailer. Complex applications range from robotics to CNC equipment to test equipment used by NASA or Lockheed Martin. The harness for a piece of test equipment may have 500 wires of 28 gauge with 10-12 breakouts.

Harness or cable length stretches from two inches as the shortest to 60, 80 or even 100 feet. Twelve feet or less is most common.

Dealing with such small wires stems from Brian's 15 years in aviation and avionics prior to HCA. He built harnesses, sold avionics products and served as a design airworthiness representative certified by the FAA.

Brian's involvement with harnesses and Angela's administrative expertise, combined with their desire to have their own company, led them to start HCA, whose letters stand for Harness, Cable and Assembly. Their enterprise is self-funded.

"When we worked for other companies, we would see things that should be done a certain way, but we couldn't do them that way because the owners wanted them done their way," Angela said. "We've taken everything we learned in the past and put it into our company. We hit the market just in time."

The Emerts are quick to give credit to others on the management team. Larry Roth is the vice president of sales, a former long-time employee of Schleuniger. "We wouldn't have got into the growth we've experienced without him," Brian said. Sales, most of which are to Texas companies, also are done by Todd Keesee from an office in Austin, Texas, and by three persons working for rep companies on the West Coast.

Carlos Cardenas is the VP of manufacturing. Quality control is managed by Rene Ramirez, and Janie Amador is the production supervisor. Equipment maintenance is overseen by Phung Nguyen.

The staff consists of 10 in management and 40 in production, all working one shift. The workforce has been as high as 60 and is expected to grow 20-30 percent by the end of the year. Because of space constraints, another shift may be added.

"All of our production people are very hard workers," Angela said. "They have good attitudes, and they always want to learn. It makes them feel better to learn something new. It's great to watch them grow with the business."

Lead times are 2-4 weeks, but an order for a simple product can be turned in 1-2 weeks. Rush orders are accommodated due to workers' flexibility.

Keeping the workers supplied with materials is one of Angela's major responsibilities. "Working with vendors is one of the things I like best," she said. "They have to be very competitive on pricing. It's very challenging. Our relationships with suppliers are good, but we're always looking for new sources." She always keeps in mind profitability, which is affected by pricing for high quantities and to having just-in-time delivery.

Quality is high due to continual inspection. For example, wire is evaluated when it arrives from a supplier, and products made on automated equipment are inspected hourly. The number of returns serves as a gauge of quality, and they are less than a tenth of a percent. "We are not afraid to call a customer and say an order will be late because it didn't pass QC," Brian said. "The customer may not be pleased, but we want to be honest and up front. Our commitment is to not give a customer cable that is not right."

All company functions are done in a 14,000-square-foot building. HCA initially was in a 3,000-square-foot facility but moved after a month.

The current location, which has limited expansion possibilities, should suffice another two years. At that time the Emerts have tentative plans to move into a new building on land they plan to acquire in Denton. They live outside Valley View, approximately 20 miles north of Denton.

Competition is an important concern of the Emerts, but for a different reason. They want to work with other harness and cable companies instead of against them. "Together we can be more powerful, and there will be more opportunities for all of us," Brian said. "There's more business than people think there is, and everyone can handle the overflow better.

"There are a lot of harness shops that don't do what we do, and we don't do some of the specialized products they do," Brian said. "We could build the harness business together by talking to each other. Unfortunately, everyone is so conscious about watching their back, and a lot of small cable shops are happy where they're at. We're different because we're looking for continued growth."

According to Brian, opportunity will expand for U.S.-based firms because more OEMs are outsourcing and more work is returning from Mexico due to problems with quality, customs and delivery. Conversely, he stated HCA would consider doing work in Mexico or overseas if necessary. "We're so early in our evolution, but if an opportunity comes in, we would look at it," he said.

The Emerts plan to add equipment to do injection molding and machining so HCA can offer complete products such as control boxes that include cables and harnesses. "We're always looking for new opportunities and new ways of improving processes on the floor," Brian said. "We're continually evolving."

For more information, HCA Industries may be contacted at 940-891-6190, angela@hcaind.com or www.hcaind.com. The mailing address is 1111 Shady Oaks Dr., Denton, TX 76205

The Roadster Shop
Chicagoland High-Performance Gearhead News, June-July 2006

One simple fact tells the latest story of The Roadster Shop - a doubling of sales in the last three years.

The business, located in Elgin, Ill., is owned and operated by Neal Gerber and his wife Candy. Key management is provided by their two sons, Phillip and Jeremy. The company, started 22 years ago, was purchased by the Gerbers in 2003.

With its staff of 16 people, The Roadster Shop (TRS) manufactures chassis for street rods, 1955-57 Chevrolets, classic pick-up trucks, and specialty vehicles. The company also builds turnkey street rods, muscle cars, and classics; provides street rod body-and-chassis rollers; sells and installs parts; and does service and repair.

Three main conclusions may be drawn from the impressive sales statistic about the business. One conclusion is that the Gerbers and their employees are providing outstanding products and services. Another is that customer satisfaction is high. Lastly, the business is being marketed well.

While all three aspects are important in the operation of almost any business, for TRS the emphasis on marketing may be the most significant. "Since we bought the business the products and services have not changed that much," Neal Gerber said. "The difference is that we have gone to market. The original owner did not do much of that. There is a large, viable market, and we decided to go out and get the business."

Marketing is done through a Web site and magazine advertising. TRS has a booth at 12 major shows presented by Good Guys and the National Street Rod Association.

Sales this year also are expected to be strong, according to Gerber. They are up 25 percent in the first three months compared to the same period in 2005. "We're starting to see the baby boomers reach that stage where they have been successful and they are discovering the same love affair with cars that they had in their teens," he said. "This market is growing, so 2007 will be good, too."

Vehicles of all types today have the potential to be built with advanced technological and aesthetic sophistication. TRS meets the needs of vehicle owners with that in mind.

Chassis production accounts for more than 50 percent of the firm's business. Most of the chassis are made for 1928-48 Fords, 1931-35 and 1955-57 Chevys, and old trucks. Chassis for one-off vehicles are available, too.

In the next six months chassis for later-model vehicles will be in production, starting with 1964-68 Chevelles and early GTOs. "There's a trend where muscle cars are not being restored just to stock anymore," Gerber said. "These so-called J machines are moving more toward the street rod idea with new suspensions, larger tires, and new drivetrains so the cars handle and drive better."

Regardless of vehicle, each chassis is made to a customer's specifications based on the original factory specs. A standard street rod chassis has boxed rails and TIG-welded crossmembers. The front suspension has Heidt's independent A-arms, rack-and-pinion steering, dropped spindles, adjustable coilover shocks with chrome springs, and 11-inch rotors with polished Wilwood calipers. The rear suspension consists of a triangulated 4-bar, coilovers, nine-inch Ford rearend, 28-spline axles, and 10-inch drum brakes.

Frame options consist of lengthening, pinching, notching, bobbing, finishing, raising, and stepping frame rails and/or crossmembers. Suspension and steering components may be upgraded with Heidt's or other brands, polished or chromed, stainless steel or billet.

Assorted bodies are available. TRS stocks the 1932 Dearborn Deuce convertible, Coast to Coast '37 convertible, Rat's Glass Speedstar coupe and roadster, and 1932 Rat's Glass three-window coupe and roadster. Among the body options are: retractable convertible top, power windows, front and rear glass package, grille shell, oak and steel reinforcement, chopped top, garnish moldings, and hinged and latched hood, doors, and deck lid.

To enhance the notion of being one-stop shop, TRS has an extensive line of products from major brands. They include Ididit, Flaming River, Rock Valley, GM Performance Parts, Wilwood, Gibbon, American Racing, Flowmaster, Billet Specialties, Aeroquip, Demon Carburetion, Hot Rods & Horsepower, Edelbrock, and Earl's Performance Products.

TRS does any kind of vehicle work, from component fabrication or installation to a complete street rod build. The latter can cost between $120,000 and $200,000.

Projects have included 1932 Deuce roadsters and coupes, 1934 Ford roadster, 1930 Model A tudor, 1927 Model T turtle-deck roadster, and 1953 Ford F-100. Drivetrains consist of GM and Roush engines, big-block Chevys, blowers, fuel injection, and Turbo and Tremec five-speed transmissions. One roadster even has a 1932 Marmon V-16 engine and a Viper six-speed trans.

Although Gerber, 52, has owned TRS only three years, his familiarity with the street rod, muscle car, and specialty car scene extends back to his teenage years when he first built dune buggies. His work evolved into opening a shop in which he concentrated on body work.

Over the course of 28 years Gerber built his business, Gerber Auto Collision & Glass, into 16 shops in the Chicago area with 350 employees who fixed 2,000 vehicles a month. Income was $48 million. He sold the business and bought TRS from founder Bill O'Rourke, a former Elgin bank vice president who turned his street rod hobby into a full-time business.

"With the collision business there wasn't much opportunity for creativity, and I went from working in the back end to an office job," said Gerber, a Long Grove resident. "My passion has always been working on cars, and I built them at home. This was a natural transition to The Roadster Shop, and I'm able to get back to building, fabricating, and restoring cars."

Gerber has applied to TRS what he learned at his collision-repair business about customer service and turnaround time. Work on a project is divided into stages and departments specializing in the frame rails, chassis, drivetrain and suspension, sheet-metal fabrication, body work, painting, and wiring. All processes are done in house except for interior upholstery and powder coating.

"My business philosophy is based on honesty and integrity and giving customers the best value we can offer," Gerber said. "We concentrate on a high level of customer service and building relationships with customers. People really appreciate the work we do for them. It's rewarding to be able to put a smile on their face."

For his customers to be satisfied, Gerber extols praise on his employees. "They have pride, and they love what they do," he said, noting several have been at TRS more than 15 years. "It takes a unique individual to do this work because 800-1,200 hours can go into a turnkey vehicle. You must have passion from within. If not, the car does not turn out very well."

To contact The Roadster Shop, call 847-742-1932, fax 847-742-2365, or e-mail phil@roadstershop.com. The firm is located at 275 N. Grove St. in Elgin.


Nortech Systems
Wiring Harness News, July-August 2004

A major transformation is taking place at Nortech Systems in its Commercial Wire Products Division in Bemidji, Minn.

Every day the division implements changes to how it manufactures a wide variety of custom-order wiring harnesses, cable assemblies and electromechanical assemblies for the computer, automotive and medical industries. With the changes, the division is increasing overall efficiency, boosting profitability and providing better customer service.

How? Through supply-chain management. It was begun in April in the division.

"It's in the infant stages, but already we are seeing positive things," said Gregory Tweed, Nortech executive vice president and chief operating officer. "We've seen how it's affected everything from inventory levels and turns to cash management. It's really had a cascading effect."

Tweed stated the management concept, which is self-directed (unlike the outside auditing of ISO), was put into practice to improve division profitability, reduce costs, respond to increased competition and use assets more effectively. Nortech applies supply-chain principles from the time an order is received to the point of delivery, according to Tweed.

Supply-chain management focuses on improving the methods of producing and delivering a product or service to a customer with an emphasis on supply at all steps in the process. The concept consists of five major parts - plan, source, make, deliver and return.

The parts were developed by the Supply-Chain Council, an independent nonprofit organization in Pittsburgh, Pa., to which Nortech belongs. The council was begun in 1996 with 69 companies, and its current membership is approximately 1,000 worldwide. They represent various industries and include retailers, distributors, service providers and manufacturers.

Prior to supply-chain management, Nortech used methods developed and refined over the years that worked best, Tweed related. "As part of supply-chain management we have documentation that pulls everything together," he said. "We're using a scorecard with metrics that we can all see so we can evaluate ourselves using hard data against industry benchmarks.

"There are action items for each piece of supply-chain management, and then action is taken to achieve the objectives," Tweed said. "Supply-chain management has brought more visibility and focus as to how everything relates to the bigger picture. Supply-chain management has closed the loop."

Another significant impact of supply-chain management in the Nortech division has been to strengthen the ties between suppliers and customers. "Adversarial relationships have been diminished," Tweed said. "They don't last because everything is based on performance and facts."

Although always important, relationships only have gained in significance over the last few years due to the economy and competition, based on Tweed's perspective. "Competition is more intense," he said. "During the economic downturn there was a lot of belt-tightening, and some things related to price set a precedent that have not been reversed. We have not returned to where we have the ability to charge more, so we have to dig deeper internally to process things and be more efficient."

Because the Commercial Wire Products Division is part of a larger corporation, Nortech realized how beneficial supply-chain management could be to the division after first implementing the concept in another Nortech division known as Aerospace Systems. It is located in Fairmont, Minn., and produces cable assemblies for customers in the defense industry and those with applications subjected to harsh environments.

After the wire division, supply-chain management will be introduced to the other two Nortech divisions. One is Intercon 1 in Baxter, Minn., that makes camera cable and assemblies for industrial, medical, scientific and security applications. The fourth division is the Merrifield Division, named after its location in Merrifield, Minn. This Nortech segment provides customers with printed circuit boards as well as testing, diagnostics and repair.

Nortech, a public company traded on Nasdaq, is headquartered in Wayzata (in the Twin Cities area) and has two additional manufacturing facilities, both part of the Commercial Wire Products Division. They are in Augusta, Wis., and Monterrey, Mexico.

Approximately half of total Nortech sales in 2004 of $62.5 million is expected to be produced by the division. The company took in $58 million in 2003, down from $60.7 million in 2002. "We believed the business would come back," Tweed said. He was proven correct in May when the division backlog was up 46 percent over 2003.

Sales for the division are handled by manufacturer reps and division sales staff. "The mix works very well," Tweed said. "Some of the reps are very strong in our product areas, and we also get a positive sense from people working strictly for the company."

The history of the division can be traced back to when it was part of Control Data and only made products for it. In 1985 the division was purchased by Digigraphic Systems but became an independent entity and had to develop systems and processes for handling such needs as making sales and acquiring materials. However, Control Data continued as Digigraphic's main customer.

"We were basically in survival mode from 1985 to 1990," Tweed said. "When we were sold, we had 500 employees. But in the late 1980s we were down to 50 employees when Control Data products were not continued to be produced, and the people were transferred to other facilities."

Tweed, 52, knows well the background. He started in 1977 with Control Data at the Bemidji facility in a technical position and within nine months moved into management.

The low point for the company, then known as DSC Nortech, was in April 1990 when it filed for Chapter 11 bankruptcy. The reorganization was beneficial. "We emerged successfully in December of that year and did not lose a single supplier or customer," Tweed said. "That says a lot about the ethics and the people who make up Nortech."

Nortech's turnaround was dramatic, since it earned inclusion as one of the Forbes 200 Best Small Companies in America in 1995. When the list was announced in 1996, once again Nortech was honored. The third time was in 2001, when Nortech was ranked No. 59.

In Tweed's view, one of the main reasons for Nortech's achievements is quality. "The strongest element of our culture in our division is quality," he said. "It's always been there, and we're very proud of that."

An emphasis on high quality was established during Control Data's ownership, Tweed pointed out. For instance, in 1980-81 the Bemidji plant was instrumental in the development of statistical process control practices, and legendary management consultant W. Edwards Deming taught classes there.

"Quality has always been intensively measured at Nortech," Tweed said. "All our facilities are ISO 2000:9001. We've been on the leading edge of ISO certification. Bemidji had 9002 in 1995, and in our division there is continuous quality improvement with intensive programs and yearly goals and objectives. We have a general sense that quality could always be better, so the bar keeps getting raised." Helping to raise that bar is a new corporate quality-improvement team.

In 2003 the Nortech customer-satisfaction-for-price-received measurement improved 12 percent over 2002, the fourth consecutive year of such an increase. Last year scrap dropped 21 percent.

The constant improvements in quality result in better products, 80 percent made to order and 20 percent based on customer forecasts. The products not only are made better but more quickly. Tweed stated the average order in Bemidji two years ago took 40 days from placement to shipment. Today the time averages an astounding less than four days, a figure that includes material procurement.

"We do it through lean manufacturing and by working very diligently to foster supplier relationships that are mutually beneficial," Tweed said. "We've narrowed our suppliers down to those that are most committed to meeting our expectations of competitive pricing, overnight delivery and superior quality. We've gone from multiple hundreds of suppliers to a few hundred."

The parts and components are used to build a broad assortment of products, many of them in small quantities. The products, all based on customer specifications, include discrete wire assemblies, point-to-point continuous-run wire harnesses and signal and power cables.

Cable assemblies are made, and they are diverse: flat ribbon, custom jacketed and molded and subminiature custom D with mechanical and overmolded back shells. Axial, fiberoptic and electromechanical cable assemblies also are available.

Nortech's largest customer in the medical industry is GE Healthcare Systems, for which Nortech makes harnesses and cables for CT, MRI and x-ray machines. In the automotive industry, SPX Corp. in Owatonna, Minn., uses Nortech harnesses and cables in its automotive diagnostic equipment.

Semitool in Kalispell, Mont., is a Nortech customer in the computer industry. Semitool makes wafers for ICs, and each of its mammoth Nortech harnesses contains 900 wires and weighs 500 pounds. Every harness has more than 2,000 test points!

Tweed describes Nortech as "a one-stop shop." In addition to manufacturing, the company offers design assistance, custom tooling, logistics, customer service, material control and quality assurance.

Nortech wire division products are built in a 60,000 square-foot building in Bemidji and a 25,000 square-foot building in Augusta, Wis. Less-complex and higher-run products are made in a 15,000 square-foot building in Monterrey, Mexico. None of the facilities is operating at total capacity.

With the other Nortech divisions, the corporation has a workforce totaling 611. Tweed said that number was 900 at one time, but "we've learned to be more efficient and we've lost people by attrition over the years. We ship more product with less people now."

Employees receive a standard compensation package in addition to 401(k) and gain-sharing, a program that financially rewards employees when production, quality and delivery goals are met. "Employee retention is good every year," Tweed said.

Tweed stated he is bothered by the loss of jobs in the United States to China. "We want to keep as many jobs domestically as we can," he said. "If we can't achieve our goals, we're going to lose jobs."

He also has had to address the contradiction of Nortech's plant in Mexico. "People ask why are we in Mexico," he said. "Some customers demand a low-cost country. Our reasoning is that they will go anyway, and our plant there is a way to keep a customer tied to Nortech.

"We want to become the best supplier for our current customers and go after new customers because there's plenty of new business out there," Tweed said. "We always push to do better."

For more information about Nortech, call 218-444-0110, fax 218-759-0223, e-mail bemiop@nortechsys.com, visit www.nortechsys.com or write to Nortech Systems,
Commercial Wire Products Division, 4050 Norris Ct. NW, Bemidji, MN 56601-8788.


USA Harness
Wiring Harness News, May-June 2001

With such an all-American name, not surprisingly USA Harness is known for innovation and ingenuity, two hallmarks of business and industry in the United States.

Those two characteristics surface every day USA Harness opens the doors of its facility in Winnsboro, Texas, 100 miles east of Dallas. Since the company specializes in building custom electrical wiring harnesses for a wide variety of trucks and trailers of all sizes, the firm relies on its employees' innovation and ingenuity to make sure its customers' unique needs are met well.

"One of our major challenges is staying adaptable to our customers' requirements. You've thought you've seen everything until the next order comes in," said Brett Miller, engineering manager. "Another big challenge is staying on top of the Federal legislation pertaining to trucks as well as states' weight laws and bridge laws."

As in practically every other form of manufacturing, information about customer specifications and government regulations must be processed quickly and accurately. "It's often a challenge to deal with the growth and busyness in terms of meeting time frames, but quick reaction is our specialty," said Miller, who has worked three years at USA Harness. He noted the firm's normal turnaround is four weeks, but some orders can be filled in two weeks.

Orders consist of designing, building and installing harnesses for semitrailers such as flatbeds, drop-decks, dry freight or refrigerated vans, dry-bulk pneumatics, liquid transport and vehicle transport. Harnesses also are made for wreckers, cement mixers, trailer jockeys, buses, tow vehicles, armored trucks and off-road vehicles.

Harnesses for smaller trailers, such as goosenecks and tags, are constructed at New Concept Services, sister company to USA Harness located across the street (East Coke Road) in Winnsboro. The firm, begun three years ago, also produces harnesses for utility bodies.

"New Concept Services has its own customer base and does subcontracting for USA Harness," said Debbie Thompson, sales research and development manager. "The company handles the smaller work for faster turnaround." Her husband Bill is the production manager and vice president at New Concept Services, which is owned by Larry Chambley, founder of USA Harness.

In 1990 Chambley began USA Harness after working at Nationwide Electrical Wiring in Garland, Texas, and Ready-Wired Products in Dallas. With armored-truck companies as his customers, he and two employees (one of them Debbie Thompson, former production supervisor at Nationwide Electrical Wiring) started building wiring harnesses in a garage in Purley, Texas, 10 miles north of Winnsboro.

A few months after start-up, Chambley, who serves as its president and chief executive officer, was joined by four other principals in the company: Bettye McDevitt, Ronnie Price, Jim Coley and Wayne Morris. The latter two have retired from the company, but McDevitt and Price remain, serving as administrative assistant and master tool-and-die maker, respectively.

They moved the business into a leased 6,000-square-foot building in Winnsboro in mid-1990. Three years later a 12,000-square-foot building was purchased, and three additions were constructed in 1994, '95 and '96. Total building size is 35,000 square feet.

The New Concept Services building was constructed in 1998. Its 20,000 square feet was doubled this year, making the total size of the two buildings 75,000 square feet. The two buildings set on 11 acres.

According to Debbie Thompson, the substantial growth of USA Harness occurred because of Chambley's extensive involvement in the industry extending back to the mid-1970s. "He is well-known in the industry and has a good reputation," she said. "He has many close, long-term friendships with people in the industry, and they are dedicated to each other."

Such relationships with other CEOs and engineers are initiated and developed through Chambley's and other employees' attendance at trade shows, conferences, meetings and seminars. They offer technical information about electrical and lighting products, systems and processes, enabling USA Harness to keep its customers well informed about industry developments.

The company belongs to the Wiring Harness Manufacturers Association, which Chambley helped to found and serves as its treasurer. Other professional affiliations are the Truck Trailer Manufacturers Association, Society of Automotive Engineers, National Association of Trailer Manufacturers and Maintenance Council of the American Trucking Association.

Contacts within those organizations have led to companies being served by USA Harness because of its high-quality products and customization for each application. Growth amounted to approximately $1 million per year, peaking at $8.5 million.

Sales slid 10-15 percent last year when the market slowed. "The industry slump was harder on our competitors than us," said Miller, who's been at USA Harness three years. "The difference was the position that Larry put the company in financially. Also, we work the closest with customers for customized applications. Other companies are less adaptable.

"Because we are not the cheapest, sometimes we lose customers to price, but eventually they come back because of the quality," he said. "They just couldn't get what they really wanted elsewhere. At other companies their business philosophy is, `Here's our product, and that's it.' We do what you want."

USA Harness had to adapt because during four months late last calendar year and early this one, production capacity was reduced to 50 percent of potential. No production employees were laid off, although a four-day work week was instituted for two months. "Many of them have been with us three years or more, so we did what we had to do to keep them because they are trained," Miller said.

However, in a short period this spring more orders were received than the total for the four previous months, indicative of a turnaround in the truck and trailer industry. The company's fiscal year started April 1, and Miller predicted hitting $9 million in gross sales.

"We've had constant growth over the years," Thompson said. "Larry didn't throw a bunch of business at us all at once. He pulled in enough to keep it at the right pace. Sometimes there has been more growth than at other times because of our different customers. One of them might produce 30 trailers a month, while another might build 230 every month."

Of the top 25 trailer manufacturers putting out between 750 and 70,000 trailers a year, USA Harness does business with 10 of those companies. They include Transcraft Trailers in Anna, Ill., manufacturer of flatbed trailers; Cottrell in Gainesville, Ga., auto haulers; Capacity of Texas, based in Longview, trailer jockeys; and Heil Corp. in Chattanooga, Tenn., trailers. Other customers are General Engines in Lake Wales, Fla., and Miller Industries in Ooltewah, Tenn.

The biggest customer of New Concept Services is Big Tex Trailers. The firm has facilities in Mount Pleasant and Odessa, Texas.

Aftermarket companies also are included in the USA Harness customer mix. Miller said the larger firms submit orders for 100-200 pieces a week, while the smaller companies may require only 10 pieces a month. Orders might be for complete wiring systems or just lights or connectors.

Miller pointed out most USA Harness customers have remained with the company five years and longer. Product delivery and quality are two of the reasons. A third relates to the firm's innovation, which includes the development of a sealed connector called USA Plus, for which a patent has been applied. Up to 10 circuits can be used with the connector, while other companies' connectors only can accommodate seven. The connector also features a secondary lock.

"The lower number is becoming obsolete because of the accessories being put on trailers these days. They have to be able to handle rotating beacon lights and dump valves for airbags," said Miller, who used to work at Beall Trailers in Portland, Ore., and Utility Trailer Manufacturing in City of Industry, Calif.

Another advantage of a harness made by USA Harness is its plug-in connectors and over-molded sockets. "That process helps keep us in the forefront because ours is a 100-percent sealed system," Miller said. "Most of the others are only 50 percent sealed. We don't have any junction boxes with a spaghetti of wires coming out of it."

To increase harness quality, over the past two years electrical continuity has been tested with a computer in a dyno lab. "Harnesses are not hand-tested anymore," Miller said. "We've taken the human element and chance for error out of the process. We are very concerned with voltage drops, especially when the total length of a trailer can be between 90 and 110 feet."

Quality also has been improved with the use of ultrasonic welding for splicing copper connectors, eliminating the less reliable butt splices. "We may have been the first in the industry to use ultrasonic welding seven years ago," Miller said. "It makes for a very reliable product, and there is very little voltage drop. It also is a speedy, clean process."

Voltage requirements also have been affected by the increasing use in the trailer industry of light-emitting diodes (LED) as replacements for conventional lightbulbs. LEDs in a harness require lower amperage draws (.33 vs. 2 amps for a bulb) and fewer conductors. The benefits of LEDs include lower maintenance, brighter illumination and increased number of lights on a trailer.

Under development at USA Harness is multiplexing as related to electronic components. With input from customers, the process is being evaluated by Dennis Baldwin, electrical engineer.

Such matters as multiplexing are discussed at meetings of the company's Engineering Review Committee. Besides Baldwin, the committee consists of Miller, Thompson and Chambley. They address such problems as design, componentry and supply.

Material supply never ceases to be a concern in the wiring harness industry, but Miller reported USA Harness has enjoyed "good success with our suppliers. We have good relationships with our vendors, and we work with each other." Cable and wire are manufactured to specifications provided by USA Harness, while mostly standard connectors, terminals, shrink wrapping and tubing are used.

"More suppliers are promising better and shorter delivery cycles, and the product quality is good," Miller said. "One distributor has a warehouse of goods for us, so there's no huge inventory we have to keep here. Still, we have a good variety of materials here on a month-to-month basis. What we don't have we can get the next day or in a couple of weeks, so we're always OK. We haven't had problems with delivery to our customers, even those running assembly lines that require on-time delivery."

Customer needs are met by 100 people on the staffs of USA Harness and New Concept Services. The companies are the second largest employer in Winnsboro, a community of 3,000, behind the school district. They participate in many charity and community service projects and organizations. Because of its contributions to the community, USA Harness was honored as the 2000 Business of the Year by the Winnsboro Chamber of Commerce.

Besides the executives at the companies, the staffing number consists of 14 office employees, while the balance works in production, shipping and receiving, material handling and testing. Everyone at the two firms receives a standard benefits package of insurance coverages and 401(k) offerings.

Profit-sharing is paid 1-2 times a year, and year-end bonuses are awarded by Chambley. "He will compensate those people who have contributed to the company's success," Thompson said.

One definition of success relates to product quality, and everyone at the two firms is keenly aware of it. "Employees are conscientious and concerned," Miller said. "A lot of things are brought forward by them about products and processes. We try to educate everyone about how a product is used, and they respond well. They take it upon themselves to be concerned about quality."

Leadership in the companies is provided by all the aforementioned people in addition to Laura White, inside sales manager; Christine Mitchell, vice president of finance and human resources; Cheryl Tull, purchasing agent; and Kim Coursen, USA Harness production manager.

Everyone's effort over the next five years could help USA Harness top $18 million in gross sales, according to Miller. He based his projection on the increasing demand in the trailer industry for more specialization. "We can fashion a particular harness for a particular need," he said. "There's a demand for us because of our quality, service and customization. Other companies are not in as stable a condition because they cannot supply a custom product the way we can."

Specializing in custom products accentuates the innovation and ingenuity at USA Harness. Those two qualities make for an exciting place to work. Just ask Thompson: "There's always something different going on. There's never a dull moment here."