All in the Family: The Family Businesses of the Electronics Industry
In an industry founded in science, math, and technology, we all focus on the latest buzzwords: Industry 4.0, China, Mexico, ROI…it’s not often you walk through the halls of a trade show and hear about family-owned businesses or ‘ma & pa’ shops, but there are many well-known and highly successful family-run electronics companies across the globe.
STI: Madison, Alabama
In 1982, the Alabama-based Raby family went into business for themselves. Mr. Jim Raby, Mrs. Ellen Raby, and their son David, utilized Jim’s experience at NASA and the Department of Defense (Navy) to form STI Electronics, Inc. (originally Soldering Technology International). Jim had written specifications and standards for DoD contractors to pattern their manufacturing and processes by, and he constantly faced pushback from those contractors over the perceived costs to meet them. He knew that if the proper processes and procedures were in place, the contractors would actually be able to reduce cost and save money by building to those requirements. This is what inspired the creation of STI.
For the first two years, while simultaneously working ‘day jobs,’ the Raby family traveled the country putting on seminars explaining how to implement the DoD specifications and requirements. Eventually, the family realized this venture would need their full attention to thrive and they all began working at STI full time.
“Working with my mom and dad was special,” commented David Raby, President and CEO of STI. “Dad was known worldwide in our industry from his previous work, and while I had some understanding of that while in high school and college, it was still interesting to see him treated almost as a celebrity in many cases. It was a true family company, which means it had many pros and some cons. As with any new/small company, we all had to make some decisions that would determine whether or not we would survive, and there is nobody I’d trust more than a family member to make those decisions.”
Speaking with David, it’s clear to see how close the Raby clan was, even when that meant the impossible task of trying to separate work life from home life. “There was never an ‘off switch’ for work,” David added. “It didn’t matter if we were having Thanksgiving dinner or on a family vacation, STI was always a prominent topic. We were all incredibly close and I’ll always be thankful for that. We would have disagreements but nobody ever doubted the other’s motives, and we all knew we had each other’s back on anything outside the family.”
The labor of love that started STI has clearly paid off, with STI now being the premier full-service organization for training, consulting, laboratory analysis, prototyping, and small-to-medium volume PCB assembly in the electronics industry. STI also produces a complete line of solder training kits and training support products.
While Mr. & Mrs. Raby retired several years ago, David maintains that STI is still a family-oriented business, and that any employee who comes aboard is treated as such. STI strives to create an inclusive culture and cultivates a family type setting. Sadly, in June 2017, Mr. Jim Raby passed away, leaving behind his legacy, which is carried on by his son David. Jim not only started and ran a successful family business for 30+ years, but he left behind a lasting name on the electronics industry through his work and relationships, and the Jim D. Raby/STI Scholarship Fund that supports local college students.
SHENMAO: Taiwan
In October 1973, a young man of only 22 decided to build an empire from scratch. His name is Mr. San-lien Lee and he is the founder of SHENMAO Technology. At an age where most people are still struggling with what they want to do with their life, Mr. San-Lien Lee showed remarkable leadership skills, growing his nameless local supplier company into one of the world’s top three solder material manufacturers with more than 10 global offices. He is now the Chairman of SHENMAO.
SHENMAO Technology has taken the industry by storm with its global expansion, technological advancements, and impressive customer retention and satisfaction. SHENMAO Technology has successfully supplied electronics assembly materials, such as solder paste, BGA sphere, solder wire, solder bar, flux and solder preform to the worldwide electronics industry for the past 45 years, always dedicated to advancing technology and knowledge – both theirs and their customers’.
In 2003, in the SHENMAO Micro Material Institute was established to research and develop the next generation of products and technology. SHENMAO set out to study and focus on micro lead-free soldering material, aiming for high-quality, environmentally-friendly products. In 2016, the name was officially changed to SHENMAO Advanced Materials Development Center.
Since then, SHENMAO has been awarded several quality accreditations and standards, set up offices in Thailand, Munich, and the US, and received an Industrial Sustainable Excellence Award.
Mr. Watson Tseng, the current General Manager, joined SHENMAO when he was only 25. “I joined SHENMAO as a freshman with very little knowledge about the product. Chairman Lee has patiently offered me training and many opportunities throughout the years, allowing me to thrive and learn tremendously about the industry. He has taught me many things, just like a father. There was one time that I had encountered some difficulties with a customer’s request, and hesitated to ask for advice. Chairman Lee came to me and said, ‘We should face challenges bravely.’ I did as he instructed and the customer was satisfied. It has been my motto since.”
Chairman Lee’s son, Kelvin Lee, is the CEO of SHENMAO and is described by his colleagues to be personable, down-to-earth, and easy to connect with. “We’ve worked together for years and conquered many challenges,” added Mr. Tseng. “Before he joined the management team, Chairman Lee had assigned Kelvin many different job functions to ensure he had full knowledge of the company. This combination of father and son, Chairman and CEO, is amazing for the company. Chairman Lee is brave and experienced while Kelvin is vigorous and creative; I feel truly blessed to be able to join and grow with such a wonderful team.”
Count On Tools: Gainesville, Georgia
Family owned and operated, Count On Tools was founded in 1991 by Curt (President) and Renee Couch (vice President & CFO). Before co-founding COT, Curt had several years’ experience as a mechanical engineer in the electronics manufacturing industry. The company has grown steadily over its 27 years in business.
Renee has always stayed behind the public eye, but has been there every step of the way. Her involvement early on was everything from front office order entry to customer service, purchasing, shipping, accounting and more. As with any small family business, Renee and Curt have had to wear many hats. And they did all of this while raising three children.
Renee commented, “Over the course of our business’ growth, we have been both blessed and strategic to bring on fantastic, talented, energetic and most importantly family-oriented co-workers to take on a continued and expanded role in building what we have today.” While she tends to stay out of the front spotlight, this absence doesn’t diminish Renee’s role. She adds, “I still continue to be involved daily with decisions related to the growth of COT, whether it’s signing off on machine/facility procurement, expanding our workforce, filing taxes or keeping us compliant with all of our time-sensitive certifications. Curt and I both consider each of the team members as a very integral part of our success. Yes, Curt and I did start this journey, but to be where we are at today, we would never have been able to do so without our talented team.”
Though they aren’t technically family, several team members have been with COT since the beginning, including Zack Shook, Donna Shook, Jeff Lancaster and Tate Strayhorn, to name a few. Curt added, “It has always been exciting to develop new ideas with my team at COT. We have such great people employed here, and I am honored to work with them. COT is an exceptional company because we handle adversity so well. We are never afraid of change and we are able to quickly adapt to most circumstances, including new challenges from customers.”
The company is committed to being the number one supplier of precision engineered components to a wide range of market sectors. Using only the most advanced CNC and other manufacturing capabilities, the company’s expertise is second to none in quality, price and delivery. COT then passes these advantages and capabilities to its customers and, in so doing, creates long-term relationships.
“We are honored at the thought of where we started and where COT is today as a company,” added the dynamic duo. “We came from humbled beginnings, but strived for excellence. This, combined with many other factors, has allowed us to continue to grow year after year. We’re proud of our 27-year track record of organic growth and sustained profitability while delivering global solutions for SMT nozzles and consumables to this industry.”
Nihon Superior: Osaka, Japan
In 1966, Toshiro Nishimura decided to become an independent businessman and start his own company to market the products of Superior Flux Mfg. & Co., imported by Matsushita Electric Trading Co., Ltd., and established Nihon Superior Company. Currently there are three generations of Nishimuras working at Nihon Superior: Toshiro Nishimura, the Founder and current Chairman; Tetsuro Nishimura, the current President/CEO; and Takatoshi Nishimura, R&D Director.
“Since our inception, we have made our mark on the world by gathering the most advanced soldering and brazing technologies and products from around the world, and supplying them to companies in the metal-joining industry,” said Tetsuro Nishimura, President & CEO. “Backed by our knowledge of these technologies, we have developed into a global company by establishing manufacturing and sales centers in Japan as well as in Asia and Europe, and by forming business partnerships with overseas companies.”
There is a certain pride felt by passing the reins on to the next generation and knowing that your legacy will continue through your son and grandson. While Mr. Toshiro Nishimura stepped down as President in 2004, letting his son Tetsuro assume the prestigious role, his values are instilled in the entire Nishimura family.
“We are committed to earning our customers’ highest level of trust by taking full responsibility for every product we deliver to them,” added Tetsuro. “We are ready to meet their rising demands for diversification, increasingly sophisticated technologies, and environmental protection.”
The company’s latest development is SN100CVTM P608 D4, a completely halogen-free, lead-free, no-clean solder paste. Unlike silver-containing alloys that derive their strength from a dispersion of fine particles of eutectic Ag3Sn, SN100CV gains its strength from solute atoms in the tin matrix of the joint. The paste provides excellent wetting and reduces voiding.
Nihon Superior continues to offer solutions to the challenges facing the electronics industry, such as improvements in reliability, thermally stable joining, and lead-free die attach.
Virtual Industries: Colorado Springs, CO
31 years ago, Tom Mealey and Daren Palmer were strangers living an hour apart. Tom was the Production Engineering Manager at Sperry Univac, a defense contractor, and Daren and his father Hal owned a manufacturer’s rep business (Mid Mountain Rep). Daren and his father represented a line of capital equipment that Sperry Univac was evaluating for assembly of avionics circuit boards. Mid Mountain Rep won the contract for the equipment and five laser-assisted assembly machines were purchased and installed in the manufacturing line.
To show appreciation for the purchase that Mid Mountain had received a tidy commission for, Daren and Hal bought dinner at a local steak house for all of those involved in evaluating and installing the production equipment. After dinner, in the parking lot Tom and Daren discussed the possibility of going into business together selling products to the electronics industry.
The following months Daren, Hal, and Tom met frequently over pizza and beer, formulating ideas for industry products. They landed on an idea based on a prototype that Daren and Hal had made in the past, a simple tool used to manually pick and place electronic computer chips: what is now known as the PEN-VAC.
By 1987 the business was officially organized and known as Virtual Industries (because they could design, build, and sell virtually anything). The patent for the PEN-VAC was awarded in April 1992 and the rest is history. Hal eventually retired in 1999, but over the last three decades Tom and Daren used valuable customer insight to develop a product line that includes electrically-powered bench top vacuum tweezer tools, battery powered pick up tools, and compressed air powered tools. In addition to new tools, they broadened their line of pick-up tips to accommodate handling semiconductor wafers, optical components, and parts as small as 100 microns.
What makes Virtual a family company besides the father/son duo and lengthy partnership is that Daren and Tom treat the employees of Virtual Industries as if they were family. Approximately 30 percent of the workforce at Virtual Industries has for one reason or another left for greener pastures but ends up returning. With solid health insurance, a matching 401k program, and generous paid vacation time, it’s clear that Virtual Industries takes care of its own and cares for the future of its people.
Daren and Tom share the same core values that have allowed them to be in business for 31 years together. Daren and Tom both have a sibling working at Virtual Industries, and they both have the same vision for the future: To continue to market their products to high-tech industries and expand the business.
Libra Industries: Mentor, Ohio
As a young boy, Rod Howell had dreams of entrepreneurship: even while mowing lawns and completing his paper route, he dreamed of starting his own company. So it’s no surprise that out of a residential garage in Ohio in 1980, Rod and his father Bill started a machine shop called Libra Machine. This shop evolved into Libra Industries when they began manufacturing industrial diamond cutting tools. Eventually, they hired their first employee, Rod’s younger brother Chris. Thus, a family company emerged. Facing the industrial recession of the early 1980s, the small company run by a father son trio struggled to stay afloat. They decided to branch out and pave the way for new opportunities in electronics assembly. By 1987, the Howell men had invested $200,000 in SMT equipment, which was every penny they had, and moved into a larger facility.
“At the time we couldn’t afford a sales team,” recounts Rod Howell, President of Libra Industries, “so we invited all potential clients to tour our facility so they could see what we had to offer. This attracted a lot of prospects, similar to what we do today. We won customers by jumping through hoops to meet their needs, and by maintaining our reputation.”
By 1994 Libra Industries’ sales surpassed $10 million and the company soon needed to grow into an even larger facility. Fast forward to today and Libra industries has $50 million in sales, has recently acquired three other companies, has 250 employees, and more than 150,000 sq ft of plant space between their Ohio and Texas facilities.
Not only is Rod the President of a very successful company, but his daughter Jennifer Kiminas also works at Libra as the Marketing & Communications Manager. “The difference in our family business is the culture. In a family-run business it is very apparent by the way employees are treated. We treat our employees like our own family. We create traditions like Green Day and host lots of fun events much like a family would. We have zero tolerance for treating people poorly. We often refer to our associates as the Libra Industries family because that is truly how we feel about them.”
In fact, even in an early article about Libra, Rod is quoted as saying that it’s important to “find and keep good people,” noting that Libra Industries rewards their dedicated employees with trips for their 10-, 20- and 30-year milestones.
Looking toward the future, Libra Industries expects their family to continue to grow and thrive.
Inovaxe: Deerfield Beach, Florida
Though Inovaxe started in 2003, the story really began in 1985. Ben and Margy Khoshnood were strangers working at different companies. Ben was an electrical engineer specializing in design, who owned KBS, Inc. (an engineering CM) while Margy worked for Tyco Printed Circuit Group as a Process Engineer. One day Ben commissioned Tyco to have a PCB made, and Ben and Margy began a customer/supplier relationship. Actually, to this day there is a difference of opinion about why that board didn’t work!
Fast forward to 1990, Tyco was closing its Fort Lauderdale division. Margy wanted to stay in Florida and saw that KBS had a Quality Engineering position available. She applied and got the job, and was thrust into the fast lane when in her first weeks a Ford Q101 audit was due. KBS received the highest quality audit score that Thomas & Betts has ever provided. Margy was then promoted to Quality Manager and began dipping her toe into Sales. She quickly rose in the ranks and was appointed Executive VP. KBS continued to grow, and Ben sold the company in 1998.
Ever the entrepreneur, Ben started a new design and EMS company that rapidly expanded. During this time, Ben and Margy faced many challenges with growing competition from China, supply chain, and material management. They were continuously trying to exceed customer expectations while simultaneously running a lean operation.
Ben knew there had to be a solution and was determined to solve the daily material management challenges they faced and started designing their initial lean material management storage systems for them to utilize in the material handling process. Thus, Inovaxe was born in 2003 with the mission to become the leading global provider of innovative material handling solutions.
Ben’s initial Inovaxe material handling system designs were passive, with barcode labeled bin locations and the software was created using the Inovaxe single package single location philosophy. Its customers, including the US Government and many government contractors, loved the organization and ease of the software to locate their SMT reels. As technology developed, Ben and the team created and launched the InoAuto Smart Cart. They were pioneers in the electronics manufacturing market and ahead of their time. Customers did not have an issue spending $1M on a new SMT line because it was a must have to produce boards, and they thought metal racks and bins were an inexpensive way to handle their material.
The newly formed Inovaxe continued efforts to educate the industry by proving how quickly the benefits of implementing its ultra-lean Smart material handling system can be achieved, leading to many happy customers. They also quickly gained acceptance being chosen as Panasonic’s Total Solution Partner. As the Inovaxe InoAuto Smart product line grew to not only store SMT reels, but also tubes, trays, stencils, and MSD devices, they were chosen as Avnet’s key distribution partner.
The industry is now accepting and realizing that it should focus on material management improvements. Inovaxe now has high-volume global Fortune 100 customers and small low-volume/high-mix EMS providers alike in its customer portfolio. The product install base is now throughout the US, Mexico, Canada, Japan, and Israel, and the company has partnered with distribution channels in Asia, Europe, Scandinavia, and North Africa.
We had to ask Ben and Margy, ‘How do you do it?’ They work together 24/7 and have for years. Their answer is simple: opposites attract. Ben is the creative and innovative leader, while Margy is the detailed planner and implementer. The respect and appreciation is mutual, and that goes for their employees and customers as well.
Inovaxe is a family-oriented company with vast experience in the EMS and OEM markets,” commented Ben Khoshnood, President of Inovaxe. “We consider everyone a team member with a significant portion of our team working together and remotely, across many time zones, for well over 15 + years. We look forward to the future and growth of our Smart product lines to be able to provide our team and our customers with even more benefits from our Smart material solutions.”