Agenda - Council - 07/13/1999 - Laserfiche WebLink

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Direct Enclosures, Inc. i~anufacturer of steel enclosures "Enclosures direct to you" I I I I I I I I I I I I ! I To: Mike Mulrooney Date: March 19, 1999 AEC Development Consultant Michelle Kalantari From: cc: Jim Norman Paul Meyer Subject: Direct Enclosures, Inc. Just thought I would put together some quick information about our company for your reference. Direct Enclosures, Inc. is a corporation located in Maple Grove, Minnesota in a 7000 sq. ft. facility since 1991. The company manufactures steel electrical enclosures for Original Equipment Manufacturers (OEMs) located nationwide (85% of sales are out-of- state). This company is focusing on the small enclosure market, with enclosures up to 18" in length x 16" in width. Most of the enclosures sold are customized specifically for the customer. This is a corporation privately held by two individuals, Fred Kalantari and Michelle · Kalantari (father and daughter). Michelle, the President and CEO, manages day-to-day operations at Direct Enclosures, Inc.. Fred Kalantari, the Chairman of the Board, is also a majority shareholder in Whirltronics, Inc., a lawn mower blade manufacturer in Buffalo, Minnesota and runs their day-to-day operations. Fred is consulted as needed in matters pertaining to Direct Enclosures, Inc. Direct Enclosures, Inc. currently employs 2 office personnel and 6 in the shop. Shop personnel include 3 people employed through an in-house subcontractor, which performs welding and grinding operations on our enclosures. This subcontractor also takes in outside work for welding and grinding from other companies locally, but their primary emphasis is on our enclosures. The current space Direct Enclosures, Inc. occupies limits the amount and ways in which the corporation can grow. The company has 3 main opportunities for growth at this time. The first way is an increase in the volume of enclosures we build for our current customers and to obtain new customers. We have seen a growth in volume from our existing customers and have increased advertising to establish new customers. Although we have not yet reached our volume capacity in our current building, the sales projections we have received from our customers indicate that we would grow out of our existing building within 6 months because of additional warehouse space we would require. The second opportunity for growth is to vertically integrate some of the operations we cerrently outsource. For example, we buy our steel sheared to the exact sizes we require to fabricate our enclosures. Our current space prohibits us from housing a shear and the sheets of steel (4' x 10') needed to perform this operation in-house. Adding a shear would lower our steel costs, decrease our lead-time, and increase our shop personnel. Other (612) 493-486B Direct Enclosures, Inc. (612) 493~,711 PHONE 11229 91st Ave N FAX Maple Grove, MN 55369