Contec Americas celebrates 50 years of powering global automation and aerospace advancements
Located on the Space Coast in Melbourne, Florida, which is the birthplace of space exploration and a hub for the military industry as well as STEM education, Contec Americas (Contec) is a strategic partner for customers. Providing complete lifecycle solutions, its work extends from custom design through product support across various sectors, including industrial automation, IoT, AI edge computing, medical and life sciences, robotics, security, energy, and aerospace. Primarily, Contec manufactures industrial and embedded computers, single-board computers, data acquisition systems, industrial servers, and display solutions. Alex Blochtein, Chief Executive Officer, shares more about the company’s areas of expertise and core products.
“Contec is part of the Daifuku Group, the largest material handling company in the world, and originally served as its electronic arm, supporting the group’s
material handling and warehouse automation operations. Founded 50 years ago in Osaka, Japan, we have become a pioneer in industrial computing. Since then, we have evolved into a global operation that serves over 60 countries with hubs across the world. Today, we provide critical data acquisition solutions and components for the electronics industry and OEMs. With 30 percent of our workforce dedicated to research and development, significantly above the industry, we have continuously innovated throughout the last five decades, adapting from factory automation to the latest advancements in AI and edge computing. In essence, we are pioneers of the technologies that are transforming the world,” he begins.
As mentioned, this year marks Contec’s 50th anniversary: an impressive milestone and testament to the company’s successful business model. “Our customer support, high-quality products, and ability to meet customer needs while understanding the challenges faced by end-users, combined with our engineering and technology expertise, have been vital to our success. According to the Lindy Effect, the longer something has been around, the more likely it is to persist, and our talented workforce alongside the culture we built over the last five decades provide a solid rationale for continued success. Our core mission of delivering technology for a better life has carried us for 50 years, during which time we have emphasized customer focus, lifecycle management, engineering innovation, and skilled teams, which have all contributed to our longevity. Few companies that started in the electronics sector in the 1970s are still thriving today, but we have managed to maintain our success by promoting the four aspects above. We have built a strong culture where everybody is motivated, so we are very happy to celebrate this milestone together. In fact, we recently marked our 50th anniversary with a commemorative gold coin for the team,” Alex reflects.
Throughout its history, Contec has worked with many clients, including some of the biggest tech companies, establishing itself as a crucial player in the field. “While NDAs prevent me from disclosing specific details about our customers, many of whom are large corporations with revenues in the multi-billions, I can certainly discuss the key verticals and market niches we serve. Our core markets include industrial automation, healthcare, and dental. For example, we provide the computers and displays that power the technologies used for blood tests, dental apparatuses and medical robotics. In the security sector, our products are used in some airports where they assist with body scans and other security measures. Additionally, given that we are based in the heart of the Space Coast, we play a crucial role in supporting military and aerospace clients with advanced electronics,” Alex reveals.
With 30 percent of its workforce dedicated to R&D, Contec strives to stay ahead of the curve in terms of innovation by embracing a twofold approach. First, since it focuses on long life cycle management, the company aims to optimize what its customers already have, rather than replacing expensive systems over and over again. Indeed, Contec prefers to support its clients through touch-ups and enhancements that keep existing products operational. Many of the industries the company serves, such as medical and security, are heavily regulated and require certifications. As a result, the Contec team cannot simply alter everything in its customers’ systems, and long-term support and compliance with regulations are essential. For example, if the FDA approves a medical robot, the approval process can take one to two years, making any changes complicated to implement. “This is why our product lifecycle support commitments are invaluable. We maintain platform stability while competitors force costly redesigns every few years.”
Secondly, Contec strives to introduce new technologies, like robotics and automation, to emerging markets, always considering life cycle stability. The company can drive innovation across various areas and prides itself on being at the cutting edge of technology. While there are some technological advancements that Contec does not pursue internally, it actively seeks partnerships with vendors who do, or adapts and integrates new solutions. Whether it is improving existing products or developing new ones, the company invests considerable effort, because stopping is not an option in the fast-evolving world of electronics.
Contec’s commitment to innovation transcends its products, as the company continuously invests in enhancing its own operations, which in turn improves its service to customers. “We have a clean room in Florida, which provides an environment where we can build and customize displays. This flexibility allows us to better serve our customers, rather than solely relying on our main fabricators in Asia. Our clean room is ITAR-compliant, a critical advantage for defense and aerospace customers who cannot risk offshore-only supply chains, empowering us to supply the military and aerospace sector as well as the Department of Defense, which requires us to adhere to ITAR regulations. To enhance our capabilities, we have invested in new thermal chambers and a 3D printing machine, and we have updated the layout of our plant. Additionally, we have improved our inventory stocking positions, particularly as we navigate the changing landscape of chip manufacturing, which is not as stable as it was before the pandemic caused disruptions. The investments we are making in our inventory total more than $2 million and ensure that we remain well-stocked.
“In terms of new product design, we have had a major breakthrough where we are focusing on new verticals that require purpose-built systems. This means that rather than only offering a circuit board, we provide full, customized systems, bundling not only the display and computer but also adjacent products that can be shipped to customers around the world,” Alex concludes. “This sets us apart from competitors, who may build computers or displays separately but cannot make bundles and ship them worldwide. This end-to-end capability, from custom engineering and US-based manufacturing to global logistics and 15-year support, positions us as a true solutions partner, not just a component supplier.”