−Removed: Nortech Systems, Inc., (“the Company”, “we”, “our”) organized in December 1990, is an Electronic Manufacturing Services (“EMS”) company headquartered in Maple Grove, Minnesota, a suburb of Minneapolis, Minnesota.
+Added: Nortech Systems, Inc., (“the Company”, “we”, “our”) organized in December 1990, is a provider of design and manufacturing solutions for complex electromedical devices, electromechanical systems, assemblies and components headquartered in Maple Grove, Minnesota, a suburb of Minneapolis, Minnesota.
We maintain facilities and operations in Minnesota in the United States;
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Our breadth of manufacturing, technical expertise and experience make us attractive to our broad customer base.
−Removed: Our customers are original equipment manufacturers (“OEMs”) in the Medical, Aerospace and Defense and Industrial markets.
+Added: Our customers are original equipment manufacturers (“OEMs”) in the Medical, Aerospace and Defense and Industrial markets.
The diversity in the markets we serve is an advantage in dealing with the effects of fluctuations from the economy and competition.
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This requires a strong relationship with our customers based on a trusting partnership as we perform as an extension of their operations.
−Removed: All of our facilities are certified to one or more of the industry standards, including International Standards Organization (“ISO”) 9001, ISO 13485, and Aerospace Systems (“AS”) 9100, with most having additional certifications based on the needs of the customers they serve.
+Added: All of our facilities are certified to one or more of the industry standards, including International Standards Organization (“ISO”) 9001, ISO 13485, and Aerospace Systems (“AS”) 9100, with most having additional certifications based on the needs of the customers they serve.
In addition to industry standard certifications we actively manage quality metrics throughout product life-cycle at all levels of the organization to provide real-time, pro-active support to our customers and their projects.
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The Company operates in the Medical, Aerospace & Defense and Industrial markets with over 50% of its revenue coming from medical device and product manufacturing and related engineering services.
−Removed: All of our operations fall under the Contract Manufacturing segment within the EMS industry.
−Removed: We strategically direct production between our various manufacturing facilities based on a number of considerations to best meet our customers’ needs.
+Added: All of our operations fall under the Contract Manufacturing segment within the Electronic Manufacturing Services (“EMS”) industry.
+Added: We strategically direct production between our various manufacturing facilities based on a number of considerations to best meet our customers’
We share resources for sales, marketing, engineering, supply chain, information services, human resources, payroll, and all corporate accounting functions.
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Our Milaca operation is a U.S.
−Removed: Food and Drug Administration (“FDA”) registered facility.
+Added: Food and Drug Administration (“FDA”) registered facility.
These certifications and registrations provide our customers assurance of our capabilities and proven processes.
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For more information on our marketing and service offerings see our web site at nortechsys.com.
−Removed: The information on our company’s website is not part of this filing.
+Added: The information on our company’s website is not part of this filing.
Sources and Availability of Materials
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In 2021, we, like many other companies in our industries, experienced significant supply chain and shipping disruptions.
+Added: We attempt to overcome these disruptions through advanced supply chain solutions we develop in partnership with our customers, a commitment to strong supplier partnerships and risk management tools.
Major Customers
−Removed: Our largest customer has two divisions that together accounted for approximately 23.4% and 22.5% of net sales for the years ended December 31, 2020 and 2019, respectively.
−Removed: One division accounted for approximately 21.2% and 19.9% of net sales for the years ended December 31, 2020 and 2019, respectively.
−Removed: The second division accounted for approximately 2.2% and 2.6% of net sales for the years ended December 31, 2020 and 2019, respectively.
+Added: Our largest customer accounted for approximately 26.9% and 23.4% of net sales for the years ended December 31, 2021 and 2020, respectively.
Patents and Licenses
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We do not believe that the small closely held operations pose a significant competitive threat in the markets and customers we serve, as they generally do not have the complete manufacturing and engineering services or capabilities required by our target customers.
−Removed: We do believe the larger global full service and foreign manufacturers are more focused on higher volume customer engagements and we do not see them as our primary competition.
+Added: We believe the larger global full service and foreign manufacturers are more focused on higher volume customer engagements and we do not see them as our primary competition.
We continue to see opportunities with OEM companies that have their own in-house electronic manufacturing capabilities as they evaluate their internal costs and investments against outsourcing to contract manufacturers like us.
−Removed: We do see trends of the low volume, high mix customer demand going to a regional supply base.
+Added: We see trends of the low volume, high mix customer demand going to a regional supply base.
This is a good fit with our operations in US, Mexico and Asia.
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We perform research and development for customers on an as requested, project and program basis for development of conceptual engineering and design activities as well as products moving into production.
−Removed: While we did not expend significant dollars in 2020 or 2019 on Company-sponsored product research and development, we continue to explore opportunities for developing proprietary manufacturing methods or products.
+Added: We spent approximately $528,000 and $0 on Company-sponsored product research and development in 2021 and 2020, respectively.
+Added: We continue to explore opportunities for developing proprietary manufacturing methods or products, particularly in complex wire and cable interconnect technologies.
Environmental Law Compliance
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As a medical device manufacturer, we have additional compliance requirements.
−Removed: We are required to register with the FDA and are subject to periodic inspection by the FDA for compliance with the FDA’s Quality System Regulation (“QSR”) requirements, which require manufacturers of medical devices to adhere to certain regulations, including testing, quality control and documentation procedures.
+Added: We are required to register with the FDA and are subject to periodic inspection by the FDA for compliance with the FDA’s Quality System Regulation (“QSR”) requirements, which require manufacturers of medical devices to adhere to certain regulations, including testing, quality control and documentation procedures.
Compliance with applicable regulatory requirements is subject to continual review and is rigorously monitored through periodic inspections and product field monitoring by the FDA.
−Removed: To support the quality requirements of our Aerospace and Defense market customers, our Blue Earth facility is International Traffic in Arms Regulations (“ITAR”) registered.
+Added: To support the quality requirements of our Aerospace and Defense market customers, all our US locations are International Traffic in Arms Regulations (“ITAR”) compliant.
+Added: Human Capital Resources
We have 782 full-time and 25 part-time/temporary employees as of December 31, 2021.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.