Anaheim-based Cristek Interconnects Inc. is preparing for expansion by leasing a factory in Massachusetts.
The nearly 25-year-old company makes electronic connectors, which are used by the military and aerospace and biomedical companies to transfer signals from one device to another.
Founder and owner Cristi Cristich says the new site will put the company closer to some of her biggest customers including London’s BAE Systems PLC, Waltham, Mass.-based Raytheon Co. and Falls Church, Va.-based General Dynamics Corp.
“They like to deal with people who are closer,” she said.
The 7,000-square-foot plant in Lowell could employ as many as 50 workers in the next three years and will primarily be responsible for the production of cable assemblies.
The expansion sets the company up for further growth even as less federal funding for missiles has resulted in some lost business, according to Cristich.
This year the company plans to do about $17 million in sales.
Its 50,000-square-foot site in Anaheim had about a dozen layoffs earlier in the year, although the company has hired half of them back to bring its total workforce there to 110.
Cristich says she has no plans to leave California, which has a large population of engineers.
Having access to well-trained engineers helps the company garner contracts with satellite makers, which has been one of the strongest segments for Cristek.
Cristek’s also hoping to land work for NASA’s program to launch astronauts into space, which would replace the space shuttle.
Cristech came into the business as a receptionist for a contractor in the Bay Area.
She quickly rose through the ranks and at the age of 23 began running her own connector operation.
In 1985, she used $100,000 from a former boss and a credit card to start Cristek.
“When I first went to the bank they laughed at me,” she said.
In 1991 she survived the county’s aerospace downturn by buying a competitor that went out of business.
In 2004, she lost an election for state Assembly to Chuck DeVore.
Mini Truck Maker Refocuses
Fountain Valley-based Mag International Inc. has made a transition from country clubs to military bases.
The company makes hybrid mini utility trucks and vans that are used for non-road driving.
Long popular with country clubs and resorts for transportation, the trucks have become more desirable to the government for use on military bases and have gained fans in the Forest Service and universities.
But the growth that Mag International’s seen since it was created three years ago stalled this year as it focused on establishing a dealer network and centralized customer service operations.
Last year, the company did more than $9 million in sales thanks to a large order from the Air Force, but it expects 2009 sales to be about half that.
The shells for the trucks are shipped from China and then outfitted with U.S.-made motors, batteries and controls at its 22,000-square-foot site in Fountain Valley. Having the U.S. component in production not only helps with ensuring environmental standards, but it is prioritized by some customers.
“You get better priority for government work if they’re U.S.-made,” said Eric Baron, chief executive.
It has a total of 20 workers and is looking to add about a dozen next year.
The electric trucks sell for about $20,000 each. It also offers a gas-operated version that sells for half that.
Ambitious Growth Plans
When Zachary Parker bought Placentia-based Redline Detection LLC last year, he wanted something he didn’t have to change, just grow.
His company, which has yearly sales of less than $10 million for its equipment that detects fluid leaks in cars, is expected to grow more than 20% this year.
To drum up business he’s been looking to push his products internationally—by traveling to trade shows and trying to get the word out to mechanics, which are his main buyers.
“The No. 1 use is not to find leaks, but to find repair jobs,” Parker said.
Redline also sells to Springfield, Mo.-based O’Reilly Automotive Inc. and Philadelphia-based The Pep Boys – Manny, Moe & Jack.
He’s also increased advertising and hired a team of people that make about 4,000 sales calls a month so the company will be in a position to build business as the economy grows, according to Parker.
“I don’t want to waste a good recession,” he said.
All of the products are made locally, which allows for quicker order deliveries.
Redline’s main product is Smoke Pro, which sells for $1,100 and is used by mechanics to find leaks and fix them.
It also has its Lights Out product, which allows mechanics to turn off warning lights in cars, which are mostly done at dealerships of manufacturers.
Parker, a former investment banker, bought the company for less than $10 million, he said.
