The company is working with Cornell University Cooperative Extension of Onondaga County in the effort, Hirsh said. Cooperative Extension oversees “A Different Shade of Green,” a program that provides job preparation for up to 120 low-income veterans, up to 30 percent of whom were wounded.

The Hiring Incentives to Restore Employment Act gives tax credits this year to companies such as Northeastern Electronics that hire people who have been out of work 60 days or more.

Northeastern Electronics makes wire and harness assemblies for military and commercial customers. Its defense contracts have included making cables for radio-controlled devices that jam roadside bombs of the type used in Afghanistan and Iraq.

The new workers could do jobs such as running crimping machines, soldering or building cables, Hirsh said. They would make between $8 and $12 an hour, depending on experience, he said.

They’ll join a work force that ranges from 50 to 60 workers after a recent layoff at the end of a contract, Hirsh said. Company officials hope to recall some of those laid-off workers, he said.

Contact John Mariani at jmariani@syracuse.com or 470-3105.
Copyright, 2010, The Herald Company

ELBRIDGE–A manufacturer in Elbridge plans to add about 40 employees in the coming months after winning several major military contracts and gaining more commercial business as well.

Northeastern Electronics Co., Inc. announced the new military contracts Aug. 14. The company is a designer and manufacturer of wiring and cable assemblies for a variety of applications.

The contracts announced included a four-year, $5 million contract with the U.S. Army Tank Command.

Northeastern Electronics will upgrade tank command Humvee alternators to a higher level of amps. The change will allow welding for field repair directly from the vehicles.
Additionally, the company won two other contracts from the tank command and the Army Missile Command for manufacturing-systems assemblies. Those contracts do not include a fixed-dollar amount.

Northeastern Electronics is a subcontractor on those three military projects for Veterans Contracting & Procurement, LLC of Chaumont.

A fourth military contract involves subcontracting for Telephonics Corp. of Long Island. Northeastern will provide wire and cable assemblies for a new generation of technology to counter improvised explosive devices in combat arenas like Iraq and Afghanistan.

Tim Knauss Staff writer

A small Elbridge manufacturing company that makes electronic cables and related equipment has hired about 15 workers in recent weeks and plans to hire 20 more by the end of next month. Steven M. Peltz, president and chief executive officer of Northeastern Electronics Co., said he’s not sure whether his company’s increasing sales signal an end to the recession, but he’s optimistic that might be the case.

“Manufacturers are usually the first guys in the recession, and the first guys out,” Peltz said. “I’m hopeful.”

Northeastern Electronics makes power cables, wiring harnesses and related products for military and commercial customers. Orders have increased in both sectors since June, and the company’s employees are working mandatory overtime to keep up, Peltz said.

“Both commercial and military are doing extremely well for us,” he said.

One of the company’s important military contracts is to provide cabling for the next generation of devices to disable roadside bombs of the sort used in Iraq and Afghanistan. Northeastern Electronics is a sub-contractor supplying parts for radio-controlled units that jam the improvised explosive devices.

The company had only 25 employees a year ago, but it has grown to 40 workers. Peltz said he expects to have 60 workers by the end of September.

Northeastern Electronics, which has a 17,000-square-foot factory on Route 5, has employed as many as 120 people. If it continues to win new contracts, it might reach those heights again, Peltz said.

Job applicants — especially those with experience at soldering or machine crimping — are encouraged to call the company at 689-2143.

Tim Knauss can be reached at tknauss@syracuse.com or 470-3023.
Copyright, 2009, The Herald Company

Charley Hannagan Staff writer

As Doug Hirsh watched American Airlines cancel flights and strand passengers to perform wiring inspections, he knew the solution lay on the computers at his employer, Northeastern Electronics. Northeastern, located on Route 5 in Elbridge, has an exclusive license with Rome Labs to use technology that can easily detect problems with electrical cables.

Sen. Charles E. Schumer, D-New York, promised Monday to push the Federal Aviation Administration to test the Universal Smart Cable technology, and if it proves successful, to allow airlines to use it.

“They should be asking all airlines to use this technology,” the senator said after touring the plant that employs 40 and has about $10 million a year in sales.
Founded 27 years ago, Northeastern makes cables used in military and civilian products.

Here’s how the Universal Smart Cable technology works:

Using Northeastern’s equipment, a maintenance worker sends a radio frequency through a cable to get a base reading. Any change in the reading afterward can show that the wiring has become damaged, such as through corrosion or pinching, which could then lead to a spark and fire, said Hirsh, the company’s operations manager.
The company could have a prototype ready for FAA testing by October, said Northeastern founder and President Steven M. Peltz. If airlines were ordered to use the technology, Peltz said the company would need to hire more workers and expand its facility.

In addition to aircraft, Hirsch said the technology could be used in other ways, such as by the Department of Homeland Security, or for testing cable strength on bridges.

You can contact Charley Hannagan at 470-2161 or channagan@syracuse.com

Michelle Gabel/The Post-Standard

SEN. CHARLES SCHUMER, D-N.Y., Monday visits Northeast Electronics in Elbridge. The company has technology that could detect problems in planes’ wiring. Manually checking such wiringhas forced American Airlines to cancel hundreds of flights. Schumer promised to push the Federal Aviation Administration to test the company’s Universal Smart Cable technology.

Copyright, 2008, The Herald Company

Charley Hannagan Staff writer

Northeastern Electronics Co. Inc. looks to boost its work force by almost 50 percent next year to handle an increase in its wire and cable business.

The company’s sales grew by about 35 percent this year, and expects another 30 percent to 40 percent jump in 2004, said founder and President Steven M. Peltz. The privately held company does not release sales figures.

Northeastern is a quiet company, seldom seeking publicity since its founding in 1987-88. Motorists passing the company on Route 5 in Elbridge near the Rolling Wheels raceway can’t see its brick and metal letter sign through the overgrowth.

Inside the one-story brick building, 25 workers make specialty cable and wire for commercial and military customers. The cables go into radars, telephones, computer main frames, cash registers and just about anything else that needs wires to operate.

Peltz began his career as a manufacturer’s representative in the early 1980s. He earned a commission selling products for several factories that made parts for the electronics industry.

By the mid-1980s, Peltz turned to importing products from Taiwan to sell here. He began making his own products in 1987-88, with IBM as his first customer.
“I thought I could build a niche that revolved strictly around wire and cable manufacturing,” Peltz said.

At the time, large electronics companies made the cable and wire used in their products. Peltz offered to take over that work from them and to do it for less.
For six years in the 1990s, Peltz had a lucrative contract with IBM to make cables for its personal computers.

“It was very, very high volume,” he said. “We blew up our employment to between 100 and 125 people a year.”

Then, in late 1996 and early 1997, IBM transferred its personal computer production to Korea, and Northeastern lost the cable work.

“It was a very difficult time for us to downsize so dramatically,” Peltz said.

Over three months, the number of employees fell from about 125 to about 25 workers, he said.

“What allowed us to rebuild the company, though, was we never had a debt structure,” Peltz said.

Other than the mortgage on the Elbridge building – which was paid off last year – Northeastern has never had to borrow money, he said.

It took a lot of hard work to stay debt free all those years, Peltz said.

“If I had debt when I lost the IBM contract, I would have gone under,” he said.

Over the years, Northeastern has diversified its commercial customer base. It moved into the military market about a year ago, and that side of the factory will probably grow to become 40 percent to 50 percent of Northeastern’s business in 2004, Peltz said.

“Textbook-wise, it’s all wrong when one customer can dominate your account list by 80 percent,” he said. “But when the growth is so dramatic, what do you do? You don’t turn it away. You try to hold it as long as you can and hopefully grow on that.”

Peltz added, “Unfortunately our military presence is going to be very strong globally, which is going to open up opportunities for all types of manufacturing.”
Since getting the radar work a year ago, the company has segregated its commercial work from its military work for quality and security reasons, said Doug Hirsh, Northeastern’s engineering manager.

Workers seated at folding tables use tools and equipment to make cables. Everyone is cross-trained, which allows workers to switch off jobs, Hirsh said.
He joined Northeastern after taking a layoff from Carrier Corp. Hirsh said he likes working for a smaller company much more than for a corporate giant. The bureaucracy at the larger company was hard to swallow, Hirsh said.

At a smaller company, “you make a business decision, and you get to see right away whether it’s good or bad. It’s immediate,” he said. “Where at the larger companies you work on a major project that won’t show a return on investment two to three years down the road.”

Hirsh added, “if I want to change something, I talk to Steve. We make a decision and see the results in a day or two.”

In the first quarter, Northeastern will add five to 10 production workers and two engineers to keep up with demand.

Employees work a mandatory 48-hour work week, with some people working as much as 55 to 60 hours a week, Peltz said. The company has offered overtime since August.

“It’s a little untraditional, but our efficiency is so high with some of our production workers that it’s more beneficial for me to pay overtime than to bring new workers in right now to train,” he said.

“We get great high productivity, and for the people getting overtime, they love it because they get time and a half. It’s really a win-win,” Peltz said.

Copyright, 2003, The Herald Company

RICK MORIARTY The Post-Standard

At a time when many manufacturers are cutting jobs, two in Elbridge are hiring so quickly, they can’t train their new workers fast enough.

Northeastern Electronics Co. and ConnSys Inc. asked a county agency Wednesday for $12,500 each to help train their growing work forces. Northeastern officials said they have 70 production employees and 15 support personnel, and plan to boost their employment level to more than 100 by January.

A ConnSys representative said his company’s work force has grown from five in June to 10 currently, and will expand to at least 20 by the end of the year.

Northeastern makes cable and wire assemblies for computer and telecommunications equipment.

ConnSys manufactures devices that connect electronic cables to computers.

The Onondaga County Industrial Development Agency gave its support to the grants, subject to a final OK by an agency subcommittee.

Mark Vilardi, quality manager for Northeastern, said his company had just 35 employees six months ago.

The company has grown rapidly because it recently won new contracts with big customers such as IBM and American Telephone & Telegraph Co., he said.
“For a small company to grow that quickly is incredible,” Vilardi said. “We’re adding new people weekly, and it’s very difficult to keep up with that.”

He said most of the people the company is hiring have no experience in the industry. The company started in the early 1980s in East Syracuse and moved to Elbridge three years ago.

Debra Case, human resources director for Northeastern, said assembly workers at the company are paid $5 to $5.50 an hour.

Eugene Gilson, director of business planning for ConnSys, said his company has benefited from a recent trend among some large computer makers such as IBM to manufacture their products in the United States, instead of other countries.

ConnSys recently beat out companies from Mexico, Scotland, Taiwan and Thailand for a contract for 150,000 connectors, he said. ConnSys was incorporated in June 1992 by Gilson’s son, Gregory.

Money for the grants would come from fees the industrial development agency has received for helping to finance company expansions.

Agency Chairwoman Harriette McDowell said the agency may require Northeastern and ConnSys to meet certain employment levels as a condition of the grants.

Copyright, 1993, The Herald Company

Who says Central New York manufacturers can’t compete with the best in the world?

Stephen M. Peltz, president and owner of Northeastern Electronics Co. Inc. in Elbridge, says they can. And his company is proving it. As the recession’s effects continue to be felt here and elsewhere, we are pleased to learn that Northeastern is succeeding against one of the world’s toughest business competitors. “We went head to head with Japan and we won,” Peltz said.

IBM bought coil for personal-computer monitors from Japanese suppliers until Northeastern earned its chance to fill that need. It now has a $6 million contract with IBM for the coils. The deal is helping Northeastern grow. The company recently added 32 production workers, bringing the Elbridge work-force total to 75. By year’s end, 25 more workers may be added.

The “global marketplace” remains the catch phrase of this decade in business and politics. And Northeastern apparently is doing all the things the economic gurus say American firms must do to survive and flourish in it.

It is consistently producing high-quality products and getting them to customers when customers need them. IBM, AT&T and Asea Brown Boveri are among the heavyweight customers who have dubbed Northeastern a quality supplier. The designation is becoming essential for businesses to have a chance at winning contracts.
Northeastern is sprouting fresh success right from where Central New York suffered a loss five years ago. It makes cables and wire in a 22,000-square-foot plant that was home to Skan-a-Matic, a manufacturer that moved to Florida.

All Central New Yorkers should find encouragement in this turnaround. It’s proof that manufacturing can grow here – if it’s done right. Northeastern’s doing it right.

Copyright, 1993, The Herald Company

At a time when many Syracuse area manufacturers are laying off workers, Northeastern Electronics Co. Inc. in Elbridge is doing just the opposite.

The cable and wire manufacturer has hired 32 production workers since July, bringing the total work force to 75. The company expects to add another 25 jobs by the end of this year.

The growth is fueled in part by a $6 million contract Northeastern recently received from IBM. The contract is for coils used in personal computer monitors.

IBM had been buying the coils from Japanese suppliers, according to Steven M. Peltz, president and owner of Northeastern.

“We went head to head with Japan and we won,” Peltz said.

Northeastern added a second shift in August and plans to add a third shift later this month.

Peltz said the company has been named a quality supplier by several of its major customers, including IBM, AT&T and Asea Brown Boveri.

He said those awards have enhanced Northeastern’s reputation for quality and are attracting a lot of new business.

Northeastern can deliver products to its customers two to four weeks after they’re ordered, less than half the time many of its overseas competitors require, according to Peltz.

“In today’s economy, manufacturers need reduced lead time,” he said.

Peltz, a native of Liverpool, founded Northeastern 11 years ago. In 1989 he moved the company to Elbridge into a 22,000-square-foot plant on 26 acres formerly occupied by Skan-a-Matic, a manufacturer that moved to Florida in 1988.

Peltz opened a second plant in 1991 in North Carolina that makes AC power cords. He set up a separate sister company – Cordset Designs Inc. – to run that operation.

Peltz started a third company last year called ConnSys Corp. which specializes in making computer cables. ConnSys operates out of the Elbridge plant.

All three companies employ 170 people. Peltz said he expects that number to grow to 230 by early 1994.

All three companies are expected to generate sales of $8 million this year and $10 million by the end of 1994, according to Peltz.

Copyright, 1993, The Herald Company

Steven Peltz, owner of Northeastern Electronics Co. Inc. in Elbridge, wanted to expand his factory and create some new jobs.

When he turned to New York state for help, Peltz says economic development officials acted like they could care less – a charge they deny. So Peltz started checking out sites in the South, where he got a warm welcome. Virginia offered to fly him down at the state’s expense. Louisiana and Alabama stuffed his mailbox with information. Business and government leaders in Lenore County, N.C., rolled out the red carpet when he visited. They wined and dined Peltz and promised a grab bag of financial incentives if he’d locate the plant there.

Peltz opened the new factory a year ago in a former Sara Lee plant in Pink Hill, N.C. – 100 miles Southeast of Raleigh.

“Now there are 45 new manufacturing jobs in North Carolina that could have stayed here,” he says.

At a time when Central New York is fretting over factory job losses, it’s ironic a local manufacturer like Peltz who’s adding jobs would find more support out of state than in his own back yard.

State Economic Development Department officials say they were more than willing to help Peltz, but that he made unreasonable demands.

Business groups, however, say Peltz’s story is disturbingly familiar and helps explain why many companies are abandoning New York.

The Syracuse area has lost 26,300 factory jobs since 1966. The state has lost more than 400,000 factory jobs since 1981.

TWO MONTHS ago, Advanced Medical Products, another local manufacturer that employs 77 people, announced it is relocating from the town of Salina to South Carolina.

New York companies are easy pickings for Southern states, where taxes, regulations and wages are often much less burdensome than New York’s, said Robert Ward, research director of the Business Council, a New York business lobbying group.

New Yorkers pay more in state and local taxes than any other state except Alaska. The average New Yorker paid $3,267 in state and local taxes in 1990, according to the U.S. Census Bureau.

New York’s corporate taxes, the highest in the nation, are 98 percent more than the national average, according to the Advisory Commission on Intergovernmental Relations, a nonpartisan Congressional group. Corporate taxes in North Carolina are 18 percent above the national average, while South Carolina’s are 33 percent below the national average.

State Economic Development Department officials say they met with Peltz and explained the lengthy list of assistance programs available. The problem was, Peltz wanted the state to pick up the entire cost – about $200,000 – of extending water and sewer lines to Northeastern’s property in Elbridge, said Fernando Lagua, a staff member in the Economic Development department’s Syracuse office.

“HE WANTED a 100 percent grant for infrastructure work, something that doesn’t exist in New York,” Lagua says. The state gives partial grants for infrastructure work if the business owner shares the cost, something Peltz wouldn’t do. Peltz says his company can’t afford to spend money on infrastructure because it’s constantly investing in new manufacturing equipment.

“Each state has its own strengths and weaknesses, and he (Peltz) was out shopping around,” says Frank O’Connor, director of the Economic Development Department’s Syracuse office. “He may have been only hearing what he wanted to hear.”

Peltz disagrees. He says Southern states bent over backward to woo him, while the reaction he got from O’Connor’s office was one of non-interest.

Peltz, 36, grew up in Liverpool and started Northeastern 10 years ago. The company makes electronic cables and wiring used in computers, telephones and other products.

Three years ago, Peltz moved the company to Elbridge, into a 22,000-square-foot plant on 26 acres formerly occupied by Skan-a-Matic. Coincidentally, Skan-a-Matic, a manufacturer of bar code equipment, moved to Florida in 1988. The Elbridge plant employs 40 people.

PELTZ SAYS state officials told him they could pay for his infrastructure work if he moved the plant into an economic development zone, such as the one on Syracuse’s economically distressed Near West Side. Companies that move into such zones are eligible for an array of incentives from tax breaks to cheap electricity.

“We had just bought our facility,” Peltz says. “Why would we want to relocate again?”

Peltz says officials of Southern states – especially North Carolina – were practically tripping over themselves to accommodate Northeastern.

The Tar Heel’s hospitality paid off. The state gave Peltz’s company low-interest financing and tax breaks and agreed to pay for job training. To further sweeten the pot, local businesses chipped in $8,000 to help defray the cost of sandblasting and repainting the factory’s ceiling.

O’CONNOR SAYS New York offers generous economic incentives that have helped trigger expansions at area companies such as Marsellus Casket Co. in DeWitt, Hanford Manufacturing in Syracuse and Rubbermaid in Cortland.

“A lot of people think the grass is always greener on the other side,” O’Connor says. “But we have a good business climate in New York.”

O’Connor says SynderGeneral came to that conclusion last year when it decided to build a plant in Auburn and add hundreds of jobs. The air conditioning manufacturer had considered pulling out of Auburn and expanding its plant in Tennessee. The move would have cost Auburn 375 factory jobs. But state and local officials enticed SnyderGeneral to stay with a generous package of financial incentives. In addition to saving the 375 jobs, SnyderGeneral promised to create another 225.

James Gray, president of the Manufacturers Association of Central New York, says New York’s economic development incentives are more than adequate.

What makes New York unattractive to businesses are the high costs of taxes, workers compensation and other state-mandated programs, Gray said.

“THE STATE does have some of the most generous incentives, but what they do to you once you get here, they take it back in spades,” Gray says.

Although businesses often gripe about taxes and regulation, those two issues don’t have much influence on corporate relocation plans, said Susan Christopherson, an associate professor of city and regional planning at Cornell University.

She says the key issues are: proximity to markets, quality of labor, labor costs and quality of infrastructure (highways, bridges, etc.).

Peltz says Syracuse economic development groups should concentrate on helping small local businesses expand, not on attracting big companies from outside the area.
As his company grows, Peltz says he may have to look outside the state again to expand.

“I’m a hometown boy and would just as soon not do that,” Peltz says. “But we may not have a choice.”

Copyright, 1992, The Herald Company