vO The Dallas Post Dallas, PA Wednesday, February 11,1998 “7 By JESSICA MORGAN Post Correspondent DALLAS - If you spend any ‘time reading or listening to news ‘about the world of business, you'll soon become familiar with the phrase “global economy.” Whether because of the explosion in tele- communications, the rapid ex- . pansion of infrastructure, or sim- ' ply because of the sheer demand ‘for overseas products, consum- ers.dre part of a world which seems to be shrinking a little more every day. Now what does all this global ¢onomics have to do with the “Back Mountain? Energy Convert- "ers; Inc. had been doing business ora ‘worldwide basis, even before Jit ‘was acquired by the largest company in its field of heating ‘elements. ‘ Ericon became an attractive Sir Ehave for Watlow Electric “Manufacturing Company not be-. ‘cause it was a low-cost producer, “but because of its strength in ‘research and development. “Vir- tually all of our competitors are ‘bhilding factories in Mexico and ‘ shipping across the Mexican bor- "der without tariffs and other fees,” r’he explained. “So these compa- nies can make their products cheaper since wage rates are lower.” : “Through technology,” said Lloyd, “we can do things our com- petitors can’t. We have patents for products only we can use and we have a number of items in pro- duction all the time.” throughs in development of such things as replacement heating el- ements for glasstop stoves have kept Encon on the cutting edge of their industry. a “Glasstop stoves are the big- gest selling stove in the market- place today,” says Lloyd. "And we hold a patent for a vital element of ie" Yet businesses such as Encon are ‘always sought after by com- panies hoping to lure away jobs to foreign labor markets. Companies like the ineptly named Dual In- dustries of America are always looking to recruit manufacturers such as Encon to use employees subcontracted by his firm. ‘The Dallas Post inadvertently obtained a fax from the company last: October. Arlen Eisler, direc- tor of Dual Industries, was very uneasy when asked if he had spo- Break- POST PHOTOS/CHARLOTTE BARTIZEK Betty Weaver of Noxen, top photo, and Pam Long of Harveys Lake, are among 230 employees at Encon in Dallas. plant, but he did confirm that his company does do a lot of “cold calling” to manufacturers through the use of facsimile machines. “Encon could have heen one of John Lloyd - Encon general manager fessed. “I really couldn’t tell you for sure. What is certain is that Encon is now part of the largest heating element company in the world, ‘Watlow Electric Manufac- Encon (continued from page 1) the operation.” Simms-Brown said Encon was a strategic acquisition for Watlow, because Encon produces heating elements for consumer products in high volume, a market Watlow isn’t strong in. Watlow specializes in heating elements such as those used to cook hamburgers on large griddles at McDonald's. The com- pany also produces products that are used in the space shuttle and satellites, hospitals ang other in- stitutions. Also, Encon’s research and de- velopment group was working on a new heater technology at the same time as Watlow, and the combination will bring the prod- uct to market later this year. Lloyd will become general man- ager of the Dallas plant, and will have responsibility for the Watlow facility in Montgomery City, Mis- souri. He and Peter Eckman, sales manager, willreport to Tom Weiss, Watlow vice president, North American theater. Charles Eckman will stay at Dallas as engineering manager. Bob Or- lando will be promoted to opera- tions manager. Lloyd said the companies share some product lines, but have dif- ferent customers and disisibu- tion channels. Hanford Eckman, Encon’s founder, will retire, but will act-as consultant to the new owners. Eckman formed the company*in 1973, after leaving the Singer com- pany. He had been general man- ager of a Singer plant in Trucks- _ ville, in the building now occupied . by Rider's World. Singer closed that plant in 1972 and moved production to New Jersey. Lloyd said Eckman helped set up the new plant, but wanted to return to the Back Mountain. He knew there was a good staff in Dallas, and started Encon on the site it now occupies off Lower Demunds Rd. i In a note to Encon employees, Neal, Watlow president, said Encon was an attractive acquisi- tion in part because the new tech- nology Encon has developed can be brought to market quickly with Watlow’s backing. He also said Encon’s manufacturing processes will add to Watlow’s capabilities. New owner is largest in the industry Founded in 1922 in St. Louis by Louis Desloge Sr., turing Company has grown to be the world’s largest designer and manufacturer of industrial heaters, company has more than = $200 million in annual sales, 18 manufacturing plants in the U.S., Asia, Europe and Latin America, and employed 2,600 people before the Encon acquisi- tion. A family owned and operated company, Watlow began when Desloge started making electric heating elements for the shoe industry. The heaters replaced a more costly steam process. The company quickly expanded into consumer items, selling electric irons and heating pads under the Queen Quality name in 1924. The company name is derived from the low wattage heating units it pioneered. Continuing to add products, [2 > . PAL EQRERATE: sensors and controls. The Jig: Watlow started in St. Louis in 1922 the company first sold items outside the U.S. in 1945. In 1958, the company built a plant in California, and in 1973 opened its first overseas manu- facturing facility in Germany. A series of acquisitions began in 1977, when Watlow pur- chased Waynco Inc. of Winona Minnesota. Encon is the company’s ninth purchase of a manufacturer. In 1995, Watlow started the Alliance Heater Company in Montgomery i County, Missouri, to manufacture high volume tubular heaters and assemblies, a business similar to Encon’s. John. Lloyd will manage this facility as well as the Dallas plant. Watlow continues to be family owned and oper- ated. Gary Neal, the president and CEO, who was in Dallas to make the announcement of his company’s purchase of Encon, is only the third: president in the company’s 76+ year existence. He and Lloyd emphasized that Watlow is committed to maintaining and perhaps expanding the Dallas operation. & i... LOW or retir cement. 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