Telematics specialist CalAmp Corp.’s pending acquisition of the exclusive licensee of LoJack technology in the Mexican market underscores its growing reliance on the border nation.
The Irvine-based company, which makes products and software that remotely tracks vehicles and other largely mobile assets, has been gradually moving operations from China to Mexico the last six to nine months, Chief Executive Michael Burdiek told the Business Journal in a recent interview.
The initial push was to geographically diversify CalAmp’s supply chain and contract manufacturing efforts, which have largely been based in China and other Asian countries.
Opportunity struck amid the growing trade war with China waged by President Donald Trump.
“When the tariff issue arose it became even more important for us to try to ramp up production activity there. Mexico is pretty cost competitive compared to China,” Burdiek said. “What’s bad for China is good for Mexico.”
The U.S. and China have slapped more than $360 billion in tariffs on various goods traded between the countries, from aluminum to soy beans.
The $450 million valued company’s latest quarterly financial report noted that its ongoing supply chain diversification efforts “attributed to various supply disruptions, including component shortages, in the third quarter.”
The Business Journal last week reported on CalAmp’s pending acquisition of Car Track S.A. DE C.V. for about $13 million, and another $13 million overseas deal in the United Kingdom.
The Mexico transaction, expected to close this month, represents the remaining the 87.5% interest in the company CalAmp hadn’t owned.
The LoJack Mexico division began in 1998 and has about 400 employees.
CalAmp (Nasdaq: CAMP) acquired LoJack Corp. in Canton, Mass., in 2016 for $131.7 million, gaining a product suite of stolen vehicle recovery and telematics products, and a foundation for U.S. and international expansion.
Car Revamp
Irvine-based Mazda North American Operations and its Japanese parent, Mazda Motor Corp., have taken a minimalist and safety-first approach to the center entertainment console of its 2019 Mazda 3.
The designers of the sedan wanted to help minimize driver distractions, company officials told the Business Journal a few months ago, in preparation for the rollout of the model.
The redesign resulted in a smaller screen, as well as fewer buttons and knobs.
The car, which starts at about $22,000, arrived in U.S. dealerships this month.
The all-wheel drive vehicle, which competes against the Honda Civic and the Kia Forte, debuted in November at the Los Angeles Auto Show. Changes to the popular compact car were a “very difficult secret to keep,” Chief Marketing Officer Dino Bernacchi said.
The brand has sold more than 6 million units since its 2003 launch.
Mazda added about 35 workers at its Irvine operations last year to 580 local employees, up 7% from 2017. It entered the year as the 18th largest foreign-owned company in OC, according to Business Journal research.
NIH Funds
Flint Rehab, an Irvine-based maker of medical devices and technology to improve the lives of patients suffering from the effects of a stroke, spinal cord injuries, and other brain-related issues, received $1.7 million in financial grants from the Eunice Kennedy Shriver National Institute of Child Health and Human Development, one of the National Institutes of Health.
The Irvine-based company plans to use the funds over the next 30 months to create functional modules to enhance rehabilitation experiences for stroke and traumatic brain injury survivors using its device, FitMi.
The exercise-sensing system utilizes two wireless, puck-shaped devices to detect specific movement patterns from the user.
Flint Rehab also plans to use the proceeds to run tests with the University of California-Irvine to compare the latest generation FitMi with prior versions.
The company has received close to $8 million in funding from the NIH, which has helped it develop the MusicGlove, a sensorized glove that promotes finger and hand movement recovery; and MiGo, which tracks upper extremity activity and walking, and includes a smartphone app that provides motivational support with digital coaching, progressive goal setting, and social networking with other stroke survivors.
Strokes are the leading cause of adult disability, affecting over 7 million in the U.S. alone.
Flint Rehab was established in 2011 by UCI doctoral grads Nizan Friedman and Dan Zondervan.
