CTS Corporation (‘CTS’) is a global manufacturer of sensors, connectivity components, and actuators.
The company designs, manufactures, and sells a broad line of sensors, connectivity components, and actuators primarily to original equipment manufacturers (‘OEMs’), tier one suppliers for the aerospace and defense, industrial, medical, and transportation markets, and the U.S. Government. The company’s intention is to be a leading provider of sensing and motion devices, as well as connectivity co...
CTS Corporation (‘CTS’) is a global manufacturer of sensors, connectivity components, and actuators.
The company designs, manufactures, and sells a broad line of sensors, connectivity components, and actuators primarily to original equipment manufacturers (‘OEMs’), tier one suppliers for the aerospace and defense, industrial, medical, and transportation markets, and the U.S. Government. The company’s intention is to be a leading provider of sensing and motion devices, as well as connectivity components, enabling an intelligent and seamless world. These devices are categorized by their ability to Sense, Connect or Move. Sense products provide vital inputs to electronic systems. Connect products allow systems to function in synchronization with other systems. Move products ensure required movements are effectively and accurately executed.
The company operates manufacturing facilities in North America, Asia, and Europe. Sales and marketing are accomplished through its sales engineers. It also utilizes independent manufacturers' representatives and distributors to extend its sales capability.
Products By Major Markets
The company’s products perform specific electronic functions for a given product family and are intended for use in products assembled by its customers. Products are sold to industry OEMs, tier one suppliers, distributors, and the U.S. Government.
The following identifies major products by industry:
Transportation: SENSE (Controls, Pedals, Piezo Sensing Products, Sensors, Switches, and Transducers) and MOVE (Piezo Microactuators and Rotary Actuators).
Industrial: SENSE (Controls, Pedals, Piezo Sensing Products, Sensors, Switches, and Transducers); CONNECT (EMI/RFI Filters, Capacitors, Frequency Control Products, Resistors, and RF Filters); and MOVE (Piezo Microactuators and Rotary Actuators).
Medical: SENSE (Controls, Pedals, Piezo Sensing Products, Sensors, Switches, and Transducers); CONNECT (EMI/RFI Filters, Capacitors, Frequency Control Products, Resistors, and RF Filters); and MOVE (Piezo Microactuators and Rotary Actuators).
Aerospace and Defense: SENSE (Controls, Pedals, Piezo Sensing Products, Sensors, Switches, and Transducers); CONNECT (EMI/RFI Filters, Capacitors, Frequency Control Products, Resistors, and RF Filters).
Marketing and Distribution
Sales and marketing to customers are accomplished through the company’s sales engineers, independent manufacturers' representatives, and distributors. The company maintains sales offices in China, the Czech Republic, Denmark, Germany, Japan, Singapore, Taiwan, and the United States. Approximately 90% of 2024 net sales were attributable to its sales engineers.
The company’s sales engineers generally service its largest customers with application-specific products. A vast majority of the company’s products are engineered solutions. The sales engineers work closely with major customers in designing and developing products to meet specific customer requirements.
In 2024, independent distributors accounted for approximately 6% of net sales. The company uses distributors for a small portion of its product portfolio that are standard and require less design support, to service smaller customers, and to provide supply chain fulfillment for certain customers. The company’s key distribution partners include large global and regional distributors, such as Avnet, Inc., Digi-Key Electronics, Master Electronics, Future Electronics, and TTI, Inc. Additionally, it utilizes the services of independent manufacturers' representatives for customers not serviced directly by its sales engineers. Independent manufacturers' representatives receive commissions from the company in exchange for their services. During 2024, approximately 4% of net sales were attributable to independent manufacturers' representatives.
Patents, Trademarks, and Licenses
In 2024, the company continued its practice of innovation and protecting its intellectual property by obtaining patents in the U.S. and abroad. The company’s patents cover inventions relating to products that its engineers have designed, as well as for methods and technology related to the company’s manufacturing processes. The company obtained 21 patents in 2024, including six U.S. patents, nine patents in Asia, and six patents in Europe. The company owns approximately 275 patents worldwide, including 134 active U.S. patents. The company also has 57 existing patent applications that are being examined in the U.S., Europe, and Asia. Furthermore, the company owns seven registered U.S. trademarks, most of which are also registered in jurisdictions throughout the world. The company has also licensed certain patents, and its license and royalty income for 2024 was less than 1% of net sales.
Major Customers
For the year ended December 31, 2024, the company’s net sales to significant customers as a percentage of total net sales were as follows: Toyota Motor Corporation (12.2%) and Cummins, Inc. (11.7%).
The company sells parts to these two transportation customers for certain vehicle platforms under purchase agreements that have program lifetime volume estimates and are subject to purchase orders issued from time to time.
Research and Development
The company’s research and development expenses were $23,388 in 2024.
History
CTS Corporation was founded in 1896. The company was incorporated as an Indiana corporation in 1929.