everything RF recently interviewed Todd Cates, President at HyTech Associates Sales Company (HASCO). He leads the organization with over 25 years of industry experience in management, sales, and business operations. Through his efforts as co-owner, President, and a key board member, Todd has been instrumental in establishing the innovative sales strategies responsible for HASCO’s year-over-year growth and its position as a key player in the global distribution segment of the RF & Microwave industries specializing in high-quality components and engineering solutions for Military, Aerospace, Industrial and Communication markets.
Q. Can you give us a brief history of HASCO?
Todd Cates: HASCO, Inc. officially known as Hytech Associates Sales Company was established in 1986 to support the Southwest Microwave line, which was the premier line card manufacturer for Hytech Associates, a Southern California based sales rep organization. Today, however, due to forward thinking eCommerce strategies, HASCO has grown beyond servicing local customers with commercial “ready to buy” components into a complete one-stop global distribution provider of high-quality RF, Microwave, and millimeter wave components and engineering solutions for the Military, Aerospace, Industrial and Communication industries.
Q. Do you design and manufacture products or are you a distributor?
Todd Cates: HASCO is a global components and engineered solutions provider, offering design consulting and customized components as value-added services. Our growing engineered solutions business is driven by customer demands for modifications to standard components and unique product solutions.
Q. How do you decide when to resell products from partners or when to sell them under the HASCO brand?
Todd Cates: Our focus is to build and support our franchised lines, but customers occasionally demand that we provide component solutions that are not available under a franchise agreement. We, therefore, have developed partnerships to increase product agility and outsource capability to provide engineered solutions on a timely basis. This requires us to invest in customized products that are carried under our brand.
Q. Can you tell us more about HASCO's product portfolio?
Todd Cates: At HASCO, we pride ourselves on our ability to provide a large selection of “just in time” high-performance adapters, amplifiers, attenuators, connectors, cable assemblies, launch accessories, millimeter wave and waveguide components, all of which are generally in stock and ready to ship daily. However, because of our experience with components designed for systems with higher frequencies, performance, and flexibility, we look for opportunities to continue growing our robust line of RF, microwave, and millimeter-wave active, passive, and interconnect components.
Q. What market segments do you target and which segment drives the most business for you?
Todd Cates: We primarily serve defense, aerospace, test and measurement, and communications market segments. However, if a customer, regardless of segment, is looking for high-performance products that operate from 18 GHz to 300 GHz, then we either have a solution or we will find or develop a product for a customer.
Q. What are HASCO's largest product categories in terms of revenue?
Todd Cates: Our largest revenue category is interconnect products, including test cables, connectors, adapters, and waveguides. If it’s connectorized or has a waveguide port, we offer it starting at 18 GHz to 300 GHz. It is important to note that one-third of our total revenue is engineered component solutions.
Q. Who are your customers and where are they located?
Todd Cates: As an RF to mmWave component company whose roots are in Southern California, a third of the traditional component business is primarily from this region. The balance of traditional business is around 50% from the rest of the United States, and 15% from international customers. In addition, we work with customers across the USA to provide customized solutions.
Q. Can you tell us more about your distribution line card? Is there a specific type of company that you look to represent?
Todd Cates: Since we’re not a rep organization, we don’t technically have a line card, which means we source components for our customers from a large manufacturing pool. However, we have long-standing franchise relationships with manufacturers, such as Southwest Microwave, Insulated Wire, Exceed Microwave, and Advanced Microwave, all of which form our key supplier base. Our industry focus is high-performance RF, microwave, and millimeter-wave active, passive, and interconnect components, such as test cables and waveguide products, so we’re always looking to develop supplier relationships with manufacturers specializing in these components.
Q. HASCO has a great e-commerce website. Do most customers order directly from your website? What percentage of sales come from your website via e-commerce vs conventional sales channels?
Todd Cates: It may surprise customers to know that most of our business is not from our e-commerce platform. Our e-commerce website is a good source for standard products, but much of our business comes from longstanding partnerships with customers through direct relationships or our rep network. Although we are bringing more design capability to our website in the near future, it cannot replace a phone call or email where design specifications are discussed and reviewed.
Q. What differentiates you from other RF & Microwave component companies in the RF Sector?
Todd Cates: Component manufacturers are limited by their manufacturing and engineering, so a product that does not fit their capabilities is not considered. Distributors are limited by the franchised lines, so if a franchised manufacturer does not have a product, then they are not able to provide a solution. HASCO is a hybrid component supplier whereby we offer standard products and have the capability of providing customized solutions in the same manner as a fabless foundry. We are, therefore, a fabless component company that prides itself on being responsive with high levels of customer service and engineered solutions
Q. What is your product and company roadmap for the next three years?
Todd Cates: HASCO tracks emerging markets to ensure we are at the forefront of product solutions. With mmW 5G and 6G on the horizon, space-based developments, increase in drone usage in both commercial and defense sectors, and other growing markets relying on RF, microwave, and millimeter-wave components, we align our product development strategies with our customer roadmaps. Our next three years have us focusing on specialized cables, mmWave products, and filling product holes within our historical business.
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