Intellitec Products announced the successful recapitalization of the company. New financing provides for the purchase of 34,000 square feet of manufacturing facilities on a 9-acre campus, equipment for manufacturing, elimination of debt and working capital to expand engineering and marketing efforts.
“The new financing allows us to invest and expand our capabilities in engineering, marketing, manufacturing and quality while improving cash flow,” Intellitec Chairman and CEO Patrick O’Neill said. “We are increasing our capability to support the needs of our customers for domestic supply of innovative electronic products, assemblies and harnessing by expanding our vertical integration.”
The new manufacturing facilities and equipment are expected to allow for faster production and new product development, according to Intellitec President Ned Schiff.
“Manufacturers expect suppliers to respond instantaneously, and this is allowing us to greatly reduce lead times and be more responsive to our customers,” Schiff said. “We will have expanded capabilities in printed circuit board manufacturing, harnessing and testing for our products and for contract manufacturing services.”
Until recently, Intellitec has supplied electrical controls and systems primarily to OEMs, but the company has plans to expand its presence in the aftermarket. Increased production speed will allow for a higher inventory output, and the company also plans to deploy a new, aggressive marketing campaign, according to Schiff, that is intended to create pull at the consumer level, which will in turn create pull at the OEM level. The company aims to hire a new marketing manager in the next month.
In addition to developing and manufacturing its own products, Intellitec will also use its new facilities and equipment to work with customers who may not have the space or resources to create their own products. Schiff said that because of economic instability in other parts of the world as well as the desire for shorter lead times, many companies are looking to for domestic supply and production solutions. Whether customers supply Intellitec with completed designs and raw materials to have their products manufactured or require additional support in the research and development process, Intellitec plans to work with clients in their production needs.
“We’re exceptionally good at is doing small lots and doing it cost effectively,” Schiff said.
Intellitec plans to add to its engineering team to support clients and to work on new product development. Schiff said there are a list of products the company plans to roll out in the near future, although he remained vague about those products may be.
“It is a very exciting time to be part of Intellitec and our industries,” Schiff said. “The additional intelligence and functionality we are adding to our products, combined with higher quality, lower costs and reduced lead times provides tremendous value to our customers.”