Bantam finds strength in low numbers - Austin Business Journal:

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In the next room, a technicianb assembles a customized network-management device with the logo onthe box, whils his colleague puts togetherf another one that Wi-Fi service provider custom-configured for one of its "We're busting out at the seams Mike Chaddock, president and CEO of Bantam Electronics says as he surveys the company's manufacturingf floor and warehouse, which has recentlt doubled in size to 30,00p0 square feet. The company, whicgh employs about 50 at its plant on McHalee Court off ofBurnet Road, expects to continue to grow and is on the hunt for a new plac that will triple its current footprint by October Chaddock says.
Bantam, founded in the late 1960ds as , for many years had focuseds on repairing computersand electronics. It also made its own line of personall computers and servers under the XCELON brand name and ran a retaip store sellingcomputer parts. The company still manufacturews the XCELON gear and has kept the partstore going. But its growthy of late has come from its new focus providing custom-manufacturing services to technologhy companies.
The company has found its nicheprovidinvg so-called "high-mix, low-volume," manufacturing services for companieds that need a range of different productes built in small numbers, says who took over Bantam abou two years ago after heading Austin-basexd semiconductor startup and working for many years as a manager at This Bantam is on pace to ring up roughly $20 millionj in sales, up from $15 million in Chaddock says.
Bantam's ideal customed is one that makes software but not the hardwarse needed to makeit work, Chaddock It landed just such a custome r last year, when data-storage outfit of Austin shifted its focue to software development and outsourcexd its manufacturing to Increasingly, U.S.-based technology companies that outsource production are turning to contract manufacturer s in Asia and other overseas markets where labor cost s are lower, says Steven an analyst at in Austin. That trend is likely to continue. But at the same demand is expected to continue forsmalleer U.S. outfits, such as Bantam, that stanxd ready to turn out smaller runs ofproductas quickly, Froehlich says.
"There will alwayse be a place for this niche where a companhcan say, 'I need 1,000 of I need it done right and I need it in threse weeks,'" he says. "That's how long it takez a boat to sailfrom China." The higher levelo of intimacy that smaller, U.S.-based manufacturers can have with theirr customers also makes them appeal to certain types of technology companies -- particularlgy those that are based nearby, Froehlich says. That's one reasob Crossroads selected Bantam, Crossroads CEO Rob Sims says. "Thagt way, you can influence the manufacturer more effectivelu and managechanges quickly," he says.
"And if it makese sense to do the work within our then Ithink that's the right approach."