−Removed: 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.
+Added: Nortech Systems Incorporated, (“the Company”, “we”, “our”) organized in December 1990, is a provider of engineering 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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We offer a full range of value-added engineering, technical and manufacturing services and support including project management, designing, testing, prototyping, manufacturing, supply chain management and post-market services.
−Removed: Our manufacturing and engineering services include complete medical devices, printed circuit board assemblies, wire and cable assemblies, and complex higher-level electromechanical assemblies.
−Removed: The majority of our revenue is derived from products built to the customer's design specifications.
−Removed: 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.
−Removed: The diversity in the markets we serve is an advantage in dealing with the effects of fluctuations from the economy and competition.
+Added: Our manufacturing and engineering services include complex electromedical and electromechanical products including medical devices, wire and cable assemblies, printed circuit board assemblies, complex higher-level assemblies and other box builds for a wide range of industries.
In the design phase, we provide technical support, subject matter expertise in design for manufacturing and testing capabilities that allow our customer programs to get to production faster while meeting both their quality and cost requirements.
−Removed: Our customers rely on our experience and capabilities in manufacturing and supply chain to manage and reduce cost over the life cycle of their products.
+Added: Our breadth of manufacturing, technical expertise and experience make us attractive to our broad customer base.
+Added: Our customers are original equipment manufacturers (“OEMs”) in the Medical, Aerospace and Defense and Industrial markets.
+Added: The diversity in the markets we serve is an advantage to mitigate the effects of fluctuations from the economy and competition.
+Added: Our customers rely on our experience and capabilities in manufacturing and supply chain to manage and reduce total overall cost over the life cycle of their products.
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: Most of our net sales are derived from products built to the customer's unique design specifications.
+Added: Our quality systems and processes are based on ISO standards with all facilities certified to at least one of the following:
+Added: ISO 9001, ISO 13485 or AS9100.
+Added: These certifications and registrations provide our customers assurance of our capabilities and proven processes.
+Added: Our Milaca operation is a U.S.
+Added: Food and Drug Administration (“FDA”) registered facility.
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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Business Segment
−Removed: 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 Electronic Manufacturing Services (“EMS”) industry.
−Removed: We strategically direct production between our various manufacturing facilities based on a number of considerations to best meet our customers’
+Added: The Company operates in the Medical, Aerospace and Defense and Industrial markets with over 50% of its net sales coming from medical device and product manufacturing and related engineering services.
+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’ needs.
We share resources for sales, marketing, engineering, supply chain, information services, human resources, payroll, and all corporate accounting functions.
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We continue to transform our business model from one that is less transactional, and price/commodity driven to a solution-based model focused on value added services.
−Removed: We continue to pursue strategic opportunities that may include acquisitions, mergers, and/or joint ventures with complementary companies to expand our service offering, advance our competitive edge, grow our customer base and increase revenues.
+Added: We continue to pursue strategic opportunities that may include acquisitions, mergers, and/or joint ventures with complementary companies to expand our service offering, advance our competitive edge, grow our customer base and increase net sales.
Our strategic objectives and our history have been based on both organic and acquired growth.
−Removed: Our quality systems and processes are based on ISO standards with all facilities certified to ISO 9001 and/or AS9100 standards.
−Removed: We also have ISO 13485 certification which recognizes our quality management systems applicable to contract design, manufacture and repair of assemblies for the medical industry.
−Removed: Our Milaca operation is a U.S.
−Removed: Food and Drug Administration (“FDA”) registered facility.
−Removed: These certifications and registrations provide our customers assurance of our capabilities and proven processes.
We are committed to quality, cost effectiveness and responsiveness to customer requirements.
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We maintain a diversified customer base and expand into other capabilities and services when there is a fit with our core competencies and strategic vision.
−Removed: We concentrate our marketing efforts in the Medical, Aerospace & Defense and Industrial markets.
+Added: We concentrate our marketing efforts in the Medical, Aerospace and Defense and Industrial markets.
Our marketing strategy emphasizes our breadth, expertise and experience in each of our markets.
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We market our services through a mix of traditional marketing outreach, a specialized business development team and independent manufacturers' representatives.
−Removed: 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: For more information on our marketing and service offerings see our web site at www.nortechsys.com.
+Added: The information on our Company’s website is not part of this filing.
Sources and Availability of Materials
−Removed: We currently purchase the majority of our electronic components globally and directly from electronic component manufacturers and large electronic distributors.
+Added: We currently purchase most of our electronic components globally and directly from electronic component manufacturers and large electronic distributors.
In 2022 and into 2023, we, like many other companies in our industries, experienced significant supply chain and shipping disruptions.
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Major Customers
−Removed: Our largest customer accounted for approximately 26.9% of net sales in each of the years ended December 31, 2022 and 2021.
+Added: Two customers, individually, accounted for at 25.7% and 10.3%, respectively, of net sales for the year ended December 31, 2023, and one customer accounted for 26.9% of net sales for the year ended December 31, 2022.
Patents and Licenses
Our success depends on our technical expertise, trade secrets, supply chain and manufacturing skills.
−Removed: However, during the normal course of business we have obtained or developed proprietary product requiring licensing, patent, copyright or trademark protection.
+Added: During the normal course of business, we obtain or develop proprietary product requiring licensing, patent, copyright or trademark protection.
The contract manufacturing EMS industry's competitive makeup includes small closely held contract manufacturing companies, large global full-service contract manufacturers, company-owned in-house manufacturing facilities and foreign contract manufacturers.
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We see trends of the low volume, high mix customer demand going to a regional supply base.
−Removed: This is a good fit with our operations in US, Mexico and Asia.
+Added: This is a good fit with our operations in US, Mexico and China.
We continue to study and investigate other regions and global alternatives to meet our competitive challenges and customer requirements.
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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: We spent approximately $1.5 million and $0.5 million on product research and development in years ended 2022 and 2021, respectively.
+Added: We spent approximately $1.2 million and $1.5 million on product research and development in the years ended December 31, 2023 and 2022, respectively.
We continue to explore opportunities for developing proprietary manufacturing methods or products, particularly in complex wire and cable interconnect technologies.
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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, all our US locations are International Traffic in Arms Regulations (“ITAR”) compliant.
+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.
Human Capital Resources
−Removed: We have 782 full-time and 50 part-time/temporary employees as of December 31, 2022.
+Added: We have 733 full-time and 42 part-time/temporary employees as of December 31, 2023, none which is covered by union agreements.
Manufacturing personnel, including direct, indirect support and sales functions, comprise 728 employees, while general administrative employees total 47.
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We have leased manufacturing facilities in Monterrey, Mexico and Suzhou, China.
−Removed: Monterrey, Mexico has approximately $494,000 and $454,000 in long-term assets, and $2,469,000 and $2,800,000 of right of use assets at December 31, 2022 and 2021, respectively.
−Removed: Suzhou, China has approximately $805,000 and $715,000 in long-term assets, and $384,000 and $896,000 of right of use assets at December 31, 2022 and 2021, respectively.
−Removed: Export sales from our domestic operations represented 4.0% and 3.1% of net sales the years ended December 31, 2022 and 2021, respectively.
+Added: Monterrey, Mexico has approximately $747,000 and $494,000 in long-term assets, and $2,123,000 and $2,469,000 of net operating lease assets as of December 31, 2023 and 2022, respectively.
+Added: Suzhou, China has approximately $861,000 and $805,000 in long-term assets, and $278,000 and $384,000 of net operating lease assets as of December 31, 2023 and 2022, respectively.
+Added: Export sales from our U.S.
+Added: domestic operations represented 4.1% and 4.0% of net sales for the years ended December 31, 2023 and 2022, respectively.
Available Information
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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.