Key Tronic Corporation operates as a contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico, China, and Vietnam.
The company provides its customers with full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the world’s leading original equipment manufacturers. The company’s combined capabilities and v...
Key Tronic Corporation operates as a contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico, China, and Vietnam.
The company provides its customers with full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the world’s leading original equipment manufacturers. The company’s combined capabilities and vertical integration are proving to be a desirable offering to its expanded customer base.
Industry and Strategy
The expansion of the contract manufacturing industry and the company’s acquisitions have allowed it to continue to expand its customer base and the industries that it serves. The company has been successfully building a more diversified customer portfolio, spanning a wider range of industries. The company offers its customers the following services: integrated electronic and mechanical engineering, precision plastic molding, sheet metal fabrication, printed circuit board (PCB) and complete product assembly, component selection, sourcing and procurement, worldwide logistics, and new product testing and production, all at competitive pricing due to its global footprint. The company differentiates itself from others of its size and larger in the contract manufacturing industry by providing vertical integration, a flexible and responsive approach to its customers’ changing supply demands, and complete design engineering support.
The company’s unique blend of multinational facilities, vertical integration, centralized management, and core strengths continues to support its growth and its customers’ needs. The company continues to focus on controlling operating expenses and leveraging the synergistic capabilities of its world-class facilities in the United States, Mexico, China, and Vietnam.
The company is planning for new customer growth in the coming quarters by seeking to secure new programs with new and existing customers, increase its worldwide manufacturing capacity, leverage further its design engineering capabilities, and continue to improve its manufacturing and procurement processes and capabilities. Ongoing challenges that the company faces include, but are not limited to, continuing to win programs from new and existing customers, balancing capital employed, production capacity, and key personnel in the support of new customer programs, improving operating efficiencies, controlling costs while developing competitive pricing strategies, and successfully transitioning new program wins to full production.
Customers and Marketing
The company provides a mix of manufacturing services for outsourced original equipment manufacturing (OEM) products. It provides the following services: product design, surface mount technologies (SMT), and pin through hole capability for printed circuit board assembly, tool making, precision plastic molding, sheet metal fabrication and painting, liquid injection molding, complex assembly, prototype design, and full product assembly.
For the fiscal year 2024, the five largest customers accounted for 34 percent of the combined total net sales.
The company markets its products and services primarily through its direct sales department, which consists of strategically located field salespeople and distributors. The company also maintains relationships with several independent sales organizations to assist in marketing its product lines.
Manufacturing
The company has invested significant capital into SMT for volume manufacturing of complex printed circuit board assemblies and in its metal shop, providing precision metal stamping, fabricating, and finishing. The company also designs and develops tooling for injection molding and sheet metal fabrication, and manufactures the majority of plastic and sheet metal parts used in the products it manufactures.
The company uses a variety of manual and automated assembly processes in its facilities, depending upon product complexity and degree of customization. Some examples of automated processes include component insertion, SMT, selective soldering, flexible robotic assembly, computerized vision system quality inspection, laser turrets, automated switch and key top installation, robotic welding, automated powder coat application, and automated functional testing.
The company uses computer-aided design techniques and software to assist in the preparation of the tool design layout and component placement, to reduce tooling and production costs, improve component and product quality, and enhance turnaround time during product development.
The company purchases materials and components for its products from many different suppliers, including both domestic and international sources. The company develops close working relationships with its suppliers, many of whom have been supplying products to it for several years.
Research, Development and Engineering
The company’s total research, development, and engineering (RD&E) expenses were $8.3 million in the year ended June 29, 2024 (fiscal year 2024).
History
Key Tronic Corporation, a Washington corporation, was founded in 1969. The company was incorporated in 1969.
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