Bead Electronics Granted Patent for Hybrid Interconnect Pin

Bead Electronics was granted US patent no. 8,087,281 B2 on January 3rd for its innovative True Grip interconnect pin. Bead’s True Grip pin is a hybrid design that combines the strength and reliability of through hole interconnects with the ease of surface mount processing.

Cross section of a True Grip pin solder joint

Bead’s design is the first end-to-end pin produced with a wide flange that can be automatically inserted into printed circuit boards. The wide flange provides a defined seating plane for insertion depth control, a robust shoulder for seating the pin without distorting it, and a large surface area for soldering.

To read the full press release, click here.

To watch a video about the True Grip pin, click here.

The “A” Bus

An electronics manufacturer can have an enviable customer list, a world class facility, and dynamite products; but if it doesn’t have the right people in the right places, it can be in real trouble.

Employees can make or break a company.  Lee Iacocca once said, “I hire people brighter than me and then I get out of their way.”  This is terrific advice.  You want to lose a valuable employee?  Micro-manage them in what you’ve hired them to do.

Bead is very fortunate to have bright and dedicated workers.  Some have been here for decades, some just hired at the beginning of the year.  They are self-starters, hard working and committed.  They know that the customer’s expectations must be exceeded in order to retain their business.  And it’s important they have “skin in the game” which is why we have profit sharing for everyone: the better we do, the better they do.

We try desperately not to hire too quickly, especially when business spikes.  Hiring the wrong person can be time consuming, costly and disruptive to the organization.  Good workers will always see those who don’t pull their weight, and it can become a disincentive for them.  That’s why it’s vital that only “A” players are on the bus; no matter how difficult or heart wrenching, you must remove and leave the others behind.

As a family business, Bead provides opportunities for skilled family members…only if they have prior work experience and there is a position open in their area of expertise.  Expectations are higher for family members, and many times the demands are greater.  But one of the most gratifying feelings is when you realize that those family members are really “A” players, too.  And there is always room on the bus for “A” employees.

Navigating the Current Business Environment

Today, business leaders must rely heavily on gut instincts to continue manufacturing in today’s uncertain environment.

Our niche of cold metal forming, or swaging, is doing very well.  Our electronics customers, whether in telecommunication, automotive or PCB markets, continue to order at robust levels.  Plumbing and chain sales are very strong and routinely exceed budget.  But if you read the paper or tune in to the nightly news, you would swear your business should be shut down tomorrow.

Unemployment remains high, but our little companies have added conscientious workers to our teams.  We’ve hired, not because of government incentives, but because we need the added skills.  We’re uncertain of the effects of ObamaCare and the impending regulations of Dodd-Frank, but we continue to work hard because our customers are counting on us.

There seems to be trouble and conflict around the world, but that doesn’t appear to impact the growing percentage of our exports.  Though growth is slow at home, emerging countries are gobbling up consumer goods at breakneck speeds.  We shouldn’t feel threatened by the impending Free Trade agreements; we should look at them as opportunities to help us back on our feet.

Nature works in cycles.  The U.S. is in a tough cycle now, but this too shall pass.  Let’s look at each day as a glass half full and not let the constant media negativity deprive us of the joy of life.  No matter the circumstances, there is always good.

The Importance of a Great Website

Regardless of your industry, business or profession a good website is crucial.  It used to be the sign hanging outside the old shop shaped like the product sold inside.  Then the advertisement in the Yellow Pages was the answer.  Today, if you aren’t represented by a great website, you aren’t even in the game.

Putting together a great site takes partnering with a terrific web designer and spending many hours creating the all-important portal into your company.  We are fortunate to have young people in our organization who have grown up with the computer and Internet.  They’ve been key in building our site and, more importantly, monitoring the site’s traffic through Google Analytics.  ”If you can’t measure it, you can’t fix it.”

I was having dinner with a new prospective customer the other evening.  I was prepared for the meeting because I had been on their website and knew their history, products and recent news.  I was not surprised that they had visited our site, but I was stunned to learn that they actually formed a committee to review our expertise, capabilities and viability completely through our website.  That review resulted in their flying half way across the country to meet us in person, meet with our engineers and quality folks and view our factory.  As it turns out, we are a good fit for each other and a business relationship is developing.  Had we had a poor presence on the Internet, we would most likely have been eliminated as a potential supplier for interconnect pins.  Even in such a niche market as swaging, our website is our international rep.

First impressions are vital both personally and in business.  A great web presence is usually that first impression…and you must impress.  The site is a true reflection of your business.  Creating a great website is not easy or cheap; it takes time, thought, creativity and money.  The upside is that a company can re-brand itself, create new logos or a new, more modern tag line while working on their website.  These can all be re-purposed for business cards, promotional material and trade shows.

The Truth about Golf & Business

I have to admit, I’ve become rather fond of golf.  You may have a round punctuated with poor shots, difficult lies and missed opportunities.  But all it takes is one great drive or a thirty foot putt to bring you back for another round of self-imposed abuse.

Despite its challenges, golf usually reflects a player’s personality.   And that’s why you should routinely invite business associates, vendors and customers out to the course.  The way they play the game is going to be very similar to how they’ll perform in business.

Some people say golf has too many rules.  But because there are so many variables in the game, rules, along with handicaps, are established to level the playing field so that all players can compete fairly against each other.

Golf is a game of honesty and integrity.  In many instances, you are alone when you find your ball in the rough; do you improve your lie when no one’s looking or do you nudge your ball a foot or two to put it in bounds? How does your guest react to poor shots?  When he or she shanks one into the woods, do they swear, throw their club or laugh.  After all, it’s only a game. 

How do you play the game? 

Still, there is nothing better than a pleasant day on the golf course with a group of players who love the game, but are also comfortable with themselves and the way they play.  Those are the people I’d do business with.

Bad for Business

Last week the Connecticut House followed the Senate by passing the Paid Sick Leave bill (SB-913).  Many manufacturers of all sizes wrote their representatives to oppose this bill: not that paid sick leave is a bad idea, but because it’s another area where government is intruding on business decisions.  Although manufacturers were eventually excluded from SB 913, most manufacturers already provide paid time off for sickness.  But business people see this as a way for government to get their foot in the door to begin to dictate what’s best for our employees.  It’s obvious that a business that treats its employees poorly is one that has high turnover and usually poor quality.

The state of Connecticut continually stresses it’s a business friendly state, but it imposes high taxes, strict regulations, has expensive energy, uncommonly high property values, costly transportation…and a liberal state government that insists it knows what’s best for business.

The next hurdle will be the Captive Audience bill (HB 5460) which would restrict what employers can talk about with their employees at required company meetings.  It specifically prohibits employers from expressing their views on matters deemed “political” in nature with political defined very broadly to include a list of activities ranging from actual politics and political party affiliation to the decision to join any political, social, community or labor organization activity.  Of course, this is just another bone being thrown at the unions: and a close cousin to the “Card Check” bill which has failed on many levels.  But the audacity of state government to dictate what I can and cannot talk to my employees about is an affront!

I tell you what: as soon as government gets its house in order (balanced budget and all), then let’s talk about what’s best for business owners.

Acquiring Best Practices

Last December Bead completed the acquisition of Auto-Swage’s tubular and square wire swaging business.  During a particularly snowy January, Auto-Swage machinery was loaded onto flatbed trucks and hauled to the rigger’s facility for cleaning and then to Bead.   Making room on our shop floor for the “new” machinery was challenging but also an opportunity for creating a much better work flow.

Bead and Auto-Swage shared many customers.   When business was poor, the two companies waged price wars to secure business.  The customer was the winner.  Bead has added new customers as well, most of whom have been visited and shown the advantages of Bead’s products and customer service.

Bead has developed and modified its proprietary swaging presses since 1914; Auto-Swage designed and built their presses in the 1940’s.  Over the years there was quite a bit of cross-pollination between the two companies.  At one point, an Auto-Swage engineer became a Bead President, leaving his mark on the technology of both enterprises.  Now we have the enviable position of housing both press technologies under one roof with a serious program of “best practices” underway.

Acquisitions are integral stages in a company’s growth.  But when an acquisition fits as snugly in an operation such as ours, it’s a home run.

Manufacturing in the U.S. is Expanding…Seriously

An opinion piece in the Friday, January 25^th Wall Street Journal caught my attention.  Mark J. Perry, a professor of economics at the University of Michigan, Flint wrote a piece entitled, “The Truth About U.S. Manufacturing”.  In his article, he states that U.S. manufacturing today is not only growing, but it still leads the world as the largest manufacturer.  This is not what you typically hear, especially with the huge economic gains in China, India and elsewhere, and high unemployment rates here at home.  It almost doesn’t make sense.

The difference is productivity.  Thanks to capital investments and productivity-enhancing technology, America is producing more today with less manpower.  Mr. Perry says that the average U.S. worker produces about $180,000 of annual manufacturing output compared $60,000 in 1972.

We no longer work in our grandfather’s factory.  Today’s plants aren’t dirty, dark or dangerous anymore.  They are high-tech, clean and computer assisted.  Perry says technological improvements are responsible for economic growth.  Not only are factory workers earning more and achieving a higher standard of living, but the consumer also benefits from lower prices.

In my opinion, the biggest threat to the success of manufacturing in this country is the shortage of skilled workers.  No matter how high-tech or computer driven a plant is, tool makers, machinists, mechanics, operators and engineers are necessary to keep the machinery running.  Not enough young, energetic talent is entering the field today.  If this shortage continues in America, businesses will be forced to either import foreign workers or relocate to a country that has the workforce critical to operate.  U.S. schools need to get with the program and offer technical courses to generate interest in manufacturing at an earlier age.

The Constitution: A Good Starting Point

I think the decision to read the Constitution at the start of the 112th Congress was a great idea.  It’s important to remind oneself of why he or she are in the Capital in the first place.  This document will remind our elected officials that no one branch of government can act on its own or call all the shots.  Balance is the key.

The Constitution also defines the rights and responsibilities of the States.  The more the Federal government meddles in a State’s business, the blurrier the lines become.  Thus we find education (a State’s responsibility) becoming a puppet with the Feds pulling all the strings.  Since re-election has become the prime goal of most politicians, unions can exert more pressure on the puppeteer to pull all the right strings…but it’s the State’s responsibility.  Consequently, the more money we throw at education, the worse the results actually become.

A business must concentrate on its core competencies.  The more it strays from that concept, the easier it is to lose focus. When that happens, innovation gets sidetracked, quality suffers and inventories increase – the death knell of business.  So we lean out, take measured steps forward and get to know our customers better.

If the Government would lean out (control the huge waste and fraud), take measured steps (forget the omnibus bills and earmarks, but enact clear, concise legislation without unintended consequences), and get to know the American people and what they want and need (back off on the plethora of hindering and damaging regulations aimed at satisfying special interest groups), the Congress may actually achieve a respectable level of confidence.

If a business were judged by its customers as the American people judge Washington, they’d be out of business on Monday.

Bead Electronics Announces the Acquisition of Autoswage’s Swaging Operation

Bead Industries, Inc announced the purchase of the assets of Autoswage Products’ tubular and square wire swaging operation on Thursday December 30, 2010. The acquisition will become part of the corporation’s Bead Electronics Division based in Milford, CT. “This acquisition strengthens Bead’s position in the very competitive electronics interconnect market”, Mr. Bryant said.

Bead is the leading manufacturer of swaged tubular, solid wire and continuous reeled interconnect pins for the automotive, telecom, connector, data and lighting industries. Ron Andreoli, President of Bead Electronics said, “The acquisition of these product lines expands our current swaging business, provides additional complementary technology and supplements Bead’s organic growth strategy focused on new products and enhanced marketing. The integration is going smoothly and all orders will ship as scheduled. Our new customers can expect the innovative products and excellent customer service Bead Electronics is known for.”

Click here to read the original press release.