Coiled to strike: Phil Ramos formed Philatron International three decades ago to tap into the market for long-distance and specialty cables for a variety of businesses. (Small Business).

IN the heat of the Iraqi desert, the U.S. Army Tank-automotive & Armaments Command sent out an urgent request: it needed a special coiled communications cord for its tanks.

Phil Ramos Jr., founder of Philatron International, a Santa Fe Springs manufacturer of custom coiled wires, cables and cords, jumped at the opportunity.

"From scratch we designed the special cord and shipped it within one week," he said.

Ramos, who founded the company in 1974, likes to move quickly.

It's been that way since he jumped into the workforce after his discharge from a two-year stint in the Navy. Ramos took a part-time job as a floor sweeper for Western Wire and Cable, where his father was president, as a way to pay for school. He received an associate's degree in liberal arts from East Los Angeles College and attended Cal State Los Angeles majoring in business administration.

"I worked at just about every operation in the factory," Ramos recalled. "I learned everything inside out." He became operations manager of Western's automotive division in 1968, but left four years later to become vice president and general manager of Century Wire and Cable, a manufacturing start-up.

"I was sorry to see him go' said Phil Sr. of his son's departure. "He was doing a good job for me. But it was a great opportunity for him to learn a how to start a company."

That opportunity came when Ramos felt he could leverage his contacts to secure small quantities of raw materials and hire out plants to manufacture custom cables. Custom work generated larger profit margins than off-the-shelf products because they require less inventory and sell at higher prices.

"I grew the business by using time as my biggest asset," he said. "I sold before I purchased, and I sold my customers on a COD basis while paying my vendors on 30-day terms. This gave me great cash flow."

Today, Philatron counts companies as diverse as Walt Disney Co., Northrop Grumman Corp. and PACCAR Inc., manufacturer of Kenworth and Peterbilt trucks, among its 2,000 customers. Its competitors include General Cable Technologies Corp., Cable Design Technologies and Parker Hannifin Corp.

Philatron's custom wires, cables and cords last year accounted for two thirds of its $15 million in revenues. Its 100,000-square-foot manufacturing facility is dominated by gigantic drawing, cabling and bunching machines.

Ramos holds five patents, including one for an airbrake hose that caused an uproar at its introduction in 1991.

The hose uses a proprietary material less likely to kink than standard nylon hoses. Competitors charged that the hose didn't pass a crucial regulatory test -- being dipped in boiling oil -- and the National Highway Traffic Safety Administration ordered a recall of the product. Philatron protested, and Ramos sought support from members of Congress and the Small Business Administration to have the recall lifted. In response, Philatron re-engineered the product to meet the standard, and is now back in the market.

Besides brakes, its products are- used for diesel locomotives, mining shovels and irrigation and medical pumps. Disney uses the custom wire and cable in animatronics, light shows, sound systems and even transportation systems. Philatron also makes extension cords, coaxial cable, jumper cables and speaker wire.

"There are several layers between the part and the retail sale," said Bob Szablewski, business team leader for after market parts at International Truck and Engine Corp., which purchases coiled air cables and other items from Philatron. "Along the way, everyone takes a bite of the pie. An expensive part could push the final price out of the market. That makes pricing important."

Ambitious plans

Ramos estimated his company owns less than 1 percent of the electrical wire and cable market, and about 15 percent of the heavy-duty trucking market. "That leaves plenty of room for growth," he said. "Our current goal is to reach $100 million in five years?' More immediately, he's banking on generating $17 million in revenues in 2003.

The long-term goal will prove more challenging.

"The bad economy and off-shore imports are really affecting us all," Ramos said. "Some very large wire and cable manufacturers are closing their doors -- either going out of business or importing from offshore."

Philatron has held on by, among other things, opening an assembly facility Tijuana, where labor costs are lower. Its 10,000-square-foot plant employs 25 people who cut and assemble air hose and cables sent from the Santa Fe Springs facility.

About 15 percent of Philatron's products are produced there.

"The move preserved North American jobs and L.A. jobs," said Bob Brooks, a commissioned sales representative for Philatron since 1981. "It's given us the ability to compete."

Philatron's overall headcount of 160 includes several Ramos family members. Ramos' twin brother, Joseph, is chief financial officer, and their sons also hold management positions. Phil Sr. serves as an advisor.

"Having all the family around can make emotions high:' conceded Ramos, who owns 100 percent of the company. "Sometimes they think they think they can come in and leave when they want. But they should be role models for the rest of my employees. They also think they own the company. But they don't -- yet."

RELATED ARTICLE: PROFILE

Philatron International

Year Founded: 1974

Core Business: Manufacturer of electrical wire, cable and hoses

Revenues in 2002: $15 million

Revenues in 2003: $17 million (projected)

Employees in 2002:160

Employees in 2003: 160

Goal: To generate $100 million in sales in five years.

Driving Force: Developing high-quality products on short lead times.