innovate arkansas

Innovate Arkansas nurtures young, tech-based Arkansas startups, but it doesn't nurse them. That's for the big mamas, angel funds and venture capitalists, to do. But IA can cradle them and give them a bottle when necessary.

Power Technology Inc. is an IA client, but it's not your father's infant startup. This Alexander firm has been around for 40-plus years and is one of the country's pre-eminent manufacturers of laser products. It's been the recipient of a little IA nurturing.

"We are not the typical IA client," said William Burgess, vice president of operations. "IA is known for helping startup companies establish a foothold. Many of its clients have not even generated revenue yet. Power Technology, on the other hand, is a thriving, multimillion-dollar company with a 40-year track record of success in this state."

PTI is an IA client because it's considered a member of the advanced material-electronics industry under the Arkansas Economic Development Commission's definition of emerging technologies with the potential for continued growth. And it had specific needs with which IA could help. (Or perhaps the folks at IA simply thought PTI's lasers were just really cool.) IA is a public-private venture between AEDC and Winrock International.

Whatever the reason, PTI and IA have been a good fit.

"IA has assisted Power Technology with a few strategic projects - competitive analysis and financial analysis," said Walter Burgess, vice president of sales and engineering and William's brother. "In the case of the financial-analysis project, IA compiled the financial statements of our competitors and contrasted them to ours. We used this analysis to assess our strengths and weaknesses in our market. In the recent recession, IA was able to assist PTI at a time where expensive consultants were not an option."

PTI designs and manufactures standard and custom laser products for scientific, analytical, biomedical, industrial and military (the good stuff) applications.

The lasers range from ultraviolet to mid-infrared with greatly varying power levels. PTI products include laser diode modules with ultraviolet, red, green, blue and infrared wavelengths; modules with beam circularization; temperature-stabilized modules; continuous wave, pulsed and modulated units; helium-neon power supplies; and a variety of laser options and accessories.

"The company offers an extensive selection of products," Walter Burgess said. "The company has been a leader in the electro-optics industry for over four decades. PTI is one of the oldest laser companies in the United States. The laser was invented only 10 years prior to the founding of the company in 1969. Very few of the original laser companies remain in business today."

PTI sets itself apart in multiple ways, from its levels of product customization to its strong emphasis on customer satisfaction, which Burgess calls its ultimate goal while noting the firm's dedication to product development and innovation.

"PTI does offer 'standard' laser solutions," Walter Burgess said. "However, the customization is where we differentiate ourselves. In this regard, we will continue our dedication to innovation and product development to bring new solutions to the applications design engineer."

In fact, PTI customizes each product to meet customers' specific needs.

"Our competitors do not offer the level of customization that we do," said Walter Burgess. "They may offer 10 choices of laser color (wavelength) and strength (output power). PTI offers over 125 different choices of laser color and strength. In addition, our products often get customized to work in the customer's instrument or machine. Our competitors often expect the customer to use an off-the-shelf solution and modify his instrument to use a 'standard' laser. Our products are uniquely designed for a vast array of technical applications.

"Our emphasis on fabricating in-house components gives us an edge over the competition in responding to an order," he said. "We require less lead-time to gear up for production. The company is a firm believer in vertical integration. Most competitors believe in outsourcing their product line components. Our in-house flexibility and custom capabilities help us land and retain clients."

Those clients span the globe, thanks to PTI's Photonic Component Group, which sells laser diodes and components to international manufacturers.

Back home, PTI embraces its Arkie roots.

"Our local population has a strong work ethic," Walter Burgess stressed.

"We rarely have to retrain people since our employee turnover is extremely low. Last we checked, our average employee tenure was 14 years. In contrast, our competitors deal with turnover in key positions every two years. It is not unusual to see one person in California who has worked for four laser companies in a row for an average of two years each.

"As an Arkansas employer, we simply don't have to overcome that difficulty. Training new employees is expensive due to the lack of productivity for the trainer and the trainee, the direct cost of training and lost opportunity costs."

On the flip side, Arkansas - PTI aside - is not exactly a laser hotbed.

But that doesn't mean PTI can't work to change that.

"It's difficult to attract and retain the laser-related professionals we need," said Walter Burgess. "The last Ph.D. that I hired had to be imported from Nevada. Prior to that, I relocated people from Canada and the northeastern U.S. We are making a sustained effort to be a leader in establishing a technology-business base in this state for future high-tech job growth."