By GREGORY ZELLER //
Holding several ACES, it’s fair to say Intelligent Product Solutions likes the hand it’s been dealt.
In the six months since Arrow Electronics named the Hauppauge-based product-design specialist an Arrow Consulting Engineering Services partner, IPS has received 36 product-development leads from 17 different Arrow sales offices in the United States and Canada, and has already been awarded nine new development projects.
The nine projects – ranging from design of a tiny sensor for New York City-based nonprofit Charity Water to a “$2 million-plus” product-design effort for a Los Angeles-based home-beverage startup – “have required execution from multiple integrated engineering disciplines,” according to IPS co-founder and Chief Operating Officer Paul Severino.
And that’s IPS’s ACES ace in the hole: the ability to deliver on multiple technological fronts, which Severino said is a unique advantage in Arrow Electronic’s third-party partnership program.
“Most of the other partners are very niche,” Severino noted. “We have a friend who runs a company offering very specific LED-design services, so if they need LED designs they go to him.
“If they need more integrated, connected designs – a multifunctional solution – they seem to be coming to us.”
The nine projects awarded by Arrow Electronics, the Colorado-based global provider of electronic components and computing solutions formerly headquartered in Melville, were for three customers total, including “multiple small projects for Charity Water,” according to Severino.
The biggest project to date is “full engineering development” for what the COO called a “smart, in-home healthy beverage appliance” being commercialized by that unnamed California startup.
While it’s difficult to exactly quantify the bottom-line benefits of the ACES partnership, the 10-year-old national program – through which Arrow Electronics connects customers with outside resources that can quickly meet specific engineering requirements – is already having a dramatic effect on IPS’s finances.
“At the current rate at which we’re receiving leads, the new projects and customers we’re getting directly from Arrow could increase our annual revenue by up to 15 percent,” Severino told Innovate LI. “That’s a big jump.”
The partnership is also contributing to a physical IPS expansion. The company has outgrown its Seattle satellite production facility and will move into a larger space this summer.
Severino reserved details, but did note the relocation to a larger Emerald City production space was “related” to the influx of Arrow Electronics-related business.
This month, IPS also announced a new managing director for its Seattle office: Phil Salditt, who boasts more than 30 years of product-management and marketing-development experience, largely for technology firms.
Among other duties, Salditt will “manage the firm’s ongoing successful operations and rapid expansion,” IPS said in a statement, while IPS cofounder and President Mitch Maiman said the new managing director was the perfect choice to “lead our Seattle operation in its next phase of growth.”
The growth figures to come exponentially, according to Severino, who manages IPS’s involvement with the ACES program and remains very positive about the feeder system’s influence on IPS’s fortunes.
“We have a lot of other feelers out there and we’ve been around for eight-and-a-half years now, so this is not our biggest source of revenue,” he noted. “But if you think about how many feet they have out on the streets … we’re able to educate all those people on the street about who we are and what we can do.
“I was pretty optimistic about this from the get-go,” Severino added. “I’m very happy with where it’s going.”
Furthering the business-development opportunities is IPS’s participation in Arrow Electronics conferences and seminars, including an Arrow Centralized Training conference scheduled for October in Denver.
June Feldman, IPS’s senior marketing director, said IPS representatives would discuss the company’s extensive Internet of Things experience and ability to “troubleshoot product-development problems” with Arrow Electronics engineers and other conference attendees.
Being able to instruct others on such critical engineering topics is a perfect example of the dynamic range of skills that makes IPS such a valuable addition to the ACES team, Severino noted.
“The breadth and depth of IPS’s multifunctional design and engineering skills are differentiators when compared to other competing product-development companies,” he said. “These skills, combined with the reach and capability of Arrow’s sales and technical support teams, have created the foundation of a strong partnership that should be in place for years to come.”