Cat 5 Cable And Escod

Cat 5 cable will continue to be a key strategy for Escod Industries, which has expanded operations into Mexico, China and Europe over the past year. The firm, a contract manufacturer, mainly has been a domestic supplier of 5 cable cat, electromechanical devices and wiring harnesses over the past 35 years.

However, the firm is expanding globally in a bid to keep pace with its customers, according to a company executive. In addition to its completed expansions, Escod also has been weighing moves into Brazil and Scandinavia as well as into the Western US. Escod is hoping to create a niche for itself as a mid-tier contract manufacturer. Escod's strategies and expansion are further discussed.

Escod Industries, a contract manufacturer specializing in 5 cable cat technology, has set its sights on the world.After 35 years as primarily a domestic assembler of 5 cable cat, wiring harnesses, and electromechanical devices, Escod in the past year has expanded operations into Europe, Mexico, and China. They have got to expand globally, just like their customers informed vice president of sales and marketing. They are certainly not done [with 5 cable cat]. They are constantly looking at additional opportunities and additional locations.

Escod, with headquarters in Myrtle Beach, S.C., is one of four divisions of the Insilco Technologies Group. In addition to Escod, Insilco businesses include Stewart Connector Systems Inc., Glen Rock, Pa. Stewart Stamping Corp., Yonkers. N.Y. and Signal Transformer Co., Inwood, N.Y.

Escod focused almost exclusively on 5 cable cat and harness assemblies for its first 30 years in business. Five years ago, the company also began completing assembly of small electromechanical systems. Escod had revenue of about $60 million in 2006, and expects the figure to grow to between $70 million and $80 million this year. To date, Escod has resisted the temptation to enter the board-assembly business.

According to Escod’s Vice president it's a matter of not being interested in board assembly. The Solectrons of the world made their decision to get into that business a long time ago, and they actually work with some of the largest [CEMs] to provide the 5 cable cat. There has been a lot of consideration and discussion as to whether they should get involved in prototyping or small-volume [assembly] but at this point, they don't see it as economically sensible to make the investment to get into that business.

In addition to its headquarters, Escod has manufacturing plants in Lake Wales, Fla. Taylorsville, N.C. and Loris, S.C. Escod acquired the assets of Telemara International, a 5 cable cat manufacturer in Carraroe, Ireland. Three months later, Escod bought Martin Electronics, a manufacturer of 5 cable cat in Larne, Northern Ireland. Late last year, Escod began a manufacturing operation within its Stewart Connector plant in Cananese, Mexico.

In April, Insilco, purchased a minority interest in InNet Technologies Corp., a manufacturer of integrated 5 cable cat modules with operations in San Diego and China. As part of the purchase, Escod has entered into a joint venture with InNet for production of 5 cable cat assemblies at InNet's plant in Guangdong, China.

Cat 5 cable will continue to be a key strategy for Escod, according to Kane. The company would like to establish a presence in the western United States, and is also considering moves into Brazil and Scandinavia.