Freight Management Gears Up for 40th Birthday Bash; Zipz Gets Funky With Kids Sneakers
SMALL BUSINESS
When many smaller businesses shut their doors during the economic downturn following the 2001 terrorist attacks, Javad Mokhbery was determined to grab their clients.
He told his employees at Futek Advanced Sensor Technology Inc. of Irvine that he wanted to grow his company by 40%.
The maker of sensors invested money in better software technology to track its manufacturing and inventory so that it could make and ship better quality products faster. Mokhbery started holding daily meetings with Futek's engineering, sales and executive teams at 6:50 a.m. to talk about the various tasks and challenges for the day.
"It was rough getting everyone on board at first," said Mokhbery, chief executive and president.
The stress and hard work eventually paid off, he said.
Futek generates about $10 million in yearly sales making sensors and related instruments used to measure everything from torque and water pressure to heat and force. The company's sensors are often attached to equipment used to manufacture textile, automotive, aerospace and technology products.
The company competes against a host of sensor manufacturers such as England's Spectris PLC's HBM Inc., New Jersey-based Honeywell International Inc. and Ohio-based Kissler & Co.
Inside Futek's 20,000-square-foot headquarters, a good chunk of its 85 employees make and assemble sensors out of raw materials such as steel that is bought from local vendors. Once made, the sensors are tested and then shipped through third-party carriers to customers such as NASA in Washington, D.C., and Texas-based Dell Inc.
Futek gets customers through referrals and by bidding on contracts, Mokhbery said. A good chunk of Futek's business comes from overseas. He credits the sales Futek generates from companies in Europe, Asia and South America to its Web site, which the company started in 1996 as a vanguard of Internet business.
Javad Mokhbery, who is of Iranian heritage, started Futek in 1989 with his brother Mohammad Mokhberi in 1989 after moving to Michigan in the early 1980s.
Did you notice that their last names are spelled differently?
Javad Mokhbery said the mix up happened when they registered as U.S citizens.
"I spelled my last name my way and Mohammad spelled it his way. But yes, we are brothers," Mokhbery said.
Birthday Bash for Middle Man
Freight Management Inc. of Anaheim is planning a birthday bash to kick off its 40th anniversary.
The company, which generates about $15 million in yearly sales negotiating shipping rates and tracking freight for manufacturers and third-party carriers, has been around since 1968.
Founder and Chief Executive Bob Walters said it's time to celebrate.
"We've come a long way," Walters said.
Freight Management's 60 or so workers are "middle men" in the industry. They negotiate shipping rates and oversee shipped products by pre-auditing bills and filing claims at the company's 12,000-square-foot headquarters.
Freight Management sates are basically commissions paid by carriers such as Atlanta-based United Parcel Service Inc. and Memphis-based FedEx Corp.
Past clients include Foothill Ranch-based Oakley Inc., Ohio's Sherwin-Williams Co. and Kragen Auto Parts of Phoenix-based CSK Auto Corp.
A slowing economy continues to plague the logistics business, Walters said. When the economy gets soft, the total number of freight bills and revenue drops about 12% in the trucking industry, according to Walters.
Freight Management and other logistics companies are more aggressive when nabbing clients.
To get the word out about Freight Management, the company is investing more money in marketing by running advertisements in newspapers and trade magazines. The company also plans to air a series of radio commercials this year, Walters said.
And its upcoming birthday bash should also help boost company morale, he said.
Funky Footwear
Costa Mesa-based Zipz Shoe System expects to hit more than $1.2 million in sales this year making funky sneakers for toddlers and kids.
So far the one-year-old company's signature rubber sole sneakers with zip on canvas low tops and high tops have been picked up by London's Harrods department stores and Internet retailers such as Boston's Shoebuy.com Inc. with the help of distributors.
Zipz' shoes boast tops with colorful prints and solid colors that can be swapped for different looks. The shoes are made in Asia and assembled with zippers made by Georgia-based YKK Corp. of America.
The company, which is backed by eight investors, counts seven workers who handle everything from design, sales and marketing.
Zipz taps the local nonprofit Girls Inc. of Orange County in Costa Mesa to serve as its junior advisory board.
The company showcases new shoe designs to the children at Girls Inc. and gets their perspectives on how to make the shoes better, according to founder and Chief Executive Jerry Stefani.
"Hearing what the kids have to say helps with our research and development," Stefani said.
Zipz is trying to carve its niche in the booming children's apparel business with shoes that are trendy and edgy, Stefani said.
"Kids can be fashion conscious by deciding what Zipz top they're going to wear with what outfit," he said.
Zipz plans to hit the teen market this year by coming out with a shoe line designed by urban hip-hop artist Rich Evans.
Women's and men's sneakers are also in the works, Stefani said.
Zipz plans to generate more sales this year by selling its shoes in more stores in Europe and Asia, Stefani said.
Zipz plans to go public in 2010, according to Stefani.
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