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ASK PRODUCTS

Can a small American manufacturing firm succeed today in the face of intense competition from bigger firms here in the U.S., as well as with companies overseas that usually have significant cost advantages? It’s a situation rife with challenges, but ASK Products of Aurora, Ill., has proved more than equal to them.

Owner Steve Kase acquired ASK Products in 1986, and since then has turned the company that initially provided specialized metal stampings for military customers into a respected maker of the connectors used by utility, automotive and telecommunications firms, as well as the military, to manage distribution of high amperage electrical power.

Kase first teamed up with Al Kutchins and the KRD organization in 2001 when his company began to face intense competitive pressures from low-cost manufacturers in China and India.

“I needed someone who could help me make tough, strategic operating decisions so that we could compete in the world market and grow more rapidly. Our attorney recommended KRD, and I couldn’t be happier with the results,” said Kase, a 1979 graduate of the Harvard Business School. “Al and KRD have played a major role in the steady growth of our company. Before we began working with Al and KRD, we made decisions just to get from one year to the next. With Allen’s help, we’ve become much more strategic and forward looking.”

One of the early recommendations Kutchins made to Kase was to find a new bank.

“We needed more working capital, but our bank at the time suggested we pay down our existing loan before taking on any new debt. Al said, ‘You’re not with the right bank,’ which was a revolutionary thing to hear. Sure enough, within four months we found a bank that was interested in helping us grow our business,” said Kase. That was six years ago, and ASK has since seen its annual sales more than double.

“Even though 2009 was a tough year for us and for the economy in general, we bounced back nicely and are now poised for another growth spurt,” he said.

For the last several years, the ASK organization has focused a great deal of effort establishing itself as a supplier of connectors to the utility industry, especially the 158 investor-owned utilities that are among the nation’s largest companies.

“Most players in the utilities market have $10 billion or more in annual sales. Our resources are much more limited, but that hasn’t prevented us from making solid progress,”’ said Kase. “The remarkable thing we’ve accomplished is that we have been successful in entering a market that had been highly resistant to small companies, and Al has been instrumental in helping us negotiate this process.”

According to Kase, Kutchins urged ASK to go through the steps and build the capabilities to make this initiative successful. He advised them to move to a more visually exciting facility, website and market presence. He recommended that ASK invest in the right people, pursue professional excellence and anticipate customers’ needs.

“Those aren’t easy goals for a small company to reach, but following Al’s advice has paid off,” Kase said.

In the last few years, ASK has beefed up its sales and distribution network and added a 28,000-square-foot manufacturing facility. It has also strengthened the engineering and quality control components of its operation, first with new statistical process control software, then by hiring Clint Mason as engineering and quality manager and finally by achieving certification by the International Organization for Standards (ISO) in 2010.

The ability to document the quality of its products has been crucial in allowing ASK to compete effectively with overseas manufacturers that can offer lower pricing.

A great example of the ASK-KRD working relationship, noted Kase, has been in the area of marketing and branding.

“Al suggested we give more thought to our brand image and product awareness so customers could more easily identify us as an international supplier of connectors,” said Kase.

A first step in that direction was a redesign of the ASK website, including an investment in search engine optimization that significantly increased traffic to the site. Next, ASK expanded its network of manufacturers’ representatives and brought aboard a new national sales manager, Todd Beauchamp.

“Todd and Al meet regularly, and that has worked out extremely well,” said Kase. “We now have a strong presence in the eastern, southern and southwestern states, as well as in the Midwest.”

While Kase appreciates the accounting and tax services that KRD provides, “most important of all is the strategic management guidance Al gives me. He has been absolutely essential to all the changes we’ve made. When confronted with equally reasonable paths, Al helps me choose the right path, saving me precious time and money.”

Not long ago, Kase was talking business with his father and asked for some advice.

“Ask Al,” his father replied. “He hasn’t been wrong yet!”

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