USA Harness
Staying adaptable to customers' requirements

By Fred Noer

The founders of USAH are among the most talented and
experienced in the industry.

With such an all-American name, not surprisingly USA Harness is known for
innovation and ingenuity, two hallmarks of business and industry in the United States.

Those two characteristics surface every day USA Harness opens the doors of its
facility in Winnsboro, Texas, 100 miles east of Dallas. Since the company
specializes in building custom electrical wiring harnesses for a wide variety
of trucks and trailers of all sizes, the firm relies on its employees' innovation
and ingenuity to make sure its customers' unique needs are met well.

"One of our major challenges is staying adaptable to our customers' requirements. You've thought you've seen everything until the next order comes in," said
Brett Miller, engineering manager. "Another big challenge is staying on top of
the Federal legislation pertaining to trucks as well as states' weight laws and
bridge laws."

As in practically every other form of manufacturing, information about
customer specifications and government regulations must be processed
quickly and accurately. "It's often a challenge to deal with the growth and
busyness in terms of meeting time frames, but quick reaction is our specialty,"
said Miller, who has worked three years at USA Harness. He noted the firm's
normal turnaround is four weeks, but some orders can be filled in two weeks.

Orders consist of designing, building and installing harnesses for semitrailers
such as flatbeds, drop-decks, dry freight or refrigerated vans, dry-bulk pneumatics,
liquid transport and vehicle transport. Harnesses also are made for wreckers,
cement mixers, trailer jockeys, buses, tow vehicles, armored trucks and off-road
vehicles.

Harnesses for smaller trailers, such as goosenecks and tags, are constructed at
New Concept Services, sister company to USA Harness located across the street
(East Coke Road) in Winnsboro. The firm, begun three years ago, also produces harnesses for utility bodies.

"New Concept Services has its own customer base and does subcontracting
for USA Harness," said Debbie Thompson, sales research and development
manager. "The company handles the smaller work for faster turnaround." Her
husband Bill is the production manager and vice president at New Concept
Services, which is owned by Larry Chambley, founder of USA Harness.

In 1990 Chambley began USA Harness after working at Nationwide Electrical
Wiring in Garland, Texas, and Ready-Wired Products in Dallas. With
armored-truck companies as his customers, he and two employees (one of
them Debbie Thompson, former production supervisor at Nationwide Electrical
Wiring) started building wiring harnesses in a garage in Purley, Texas, 10 miles
north of Winnsboro.

USAH has a wide range of injection molding capabilities.

A few months after start-up, Chambley, who serves as its president and
chief executive officer, was joined by four other principals in the company:
Bettye McDevitt, Ronnie Price, Jim Coley and Wayne Morris. The latter
two have retired from the company, but McDevitt and Price remain, serving as administrative assistant and master tool-and-die maker, respectively.

They moved the business into a leased 6,000-square-foot building in
Winnsboro in mid-1990. Three years later a 12,000-square-foot building
was purchased, and three additions were constructed in 1994, '95 and '96.
Total building size is 35,000 square feet.

The New Concept Services building was constructed in 1998. Its 20,000 square
feet was doubled this year, making the total size of the two buildings 75,000
square feet. The two buildings set on 11 acres.

According to Debbie Thompson, the substantial growth of USA Harness
occurred because of Chambley's extensive involvement in the industry
extending back to the mid-1970s. "He is well-known in the industry and
has a good reputation,"  she said. "He has many close, long-term friendships
with people in the industry, and they are dedicated to each other."

Such relationships with other CEOs and engineers are initiated and developed
through Chambley's and other employees' attendance at trade shows, conferences,
meetings and seminars. They offer technical information about electrical and
lighting products, systems and processes, enabling USA Harness to keep its
customers well informed about industry developments.

Custom wiring systems for armored vehicles require careful detailing
on layout boards.

The company belongs to the Wiring Harness Manufacturers Association,
which Chambley helped to found and serves as its treasurer. Other professional
affiliations are the Truck Trailer Manufacturers Association, Society of Automotive
Engineers, National Association of Trailer Manufacturers and Maintenance
Council of the American Trucking Association.

Contacts within those organizations have led to companies being served by
USA Harness because of its high-quality products and customization for each
application. Growth amounted to approximately $1 million per year, peaking
at $8.5 million.

Sales slid 10-15 percent last year when the market slowed. "The industry
slump was harder on our competitors than us," said Miller, who's been at
USA Harness three years. "The difference was the position that Larry put
the company in financially. Also, we work the closest with customers for
customized applications. Other companies are less adaptable.

"Because we are not the cheapest, sometimes we lose customers to price,
but eventually they come back because of the quality," he said. "They just
couldn't get what they really wanted elsewhere. At other companies their
business philosophy is, 'Here's our product, and that's it.' We do what you
want."

USA Harness had to adapt because during four months late last calendar
year and early this one, production capacity was reduced to 50 percent of
potential. No production employees were laid off, although a four-day
work week was instituted for two months. "Many of them have been with
us three years or more, so we did what we had to do to keep them because
they are trained," Miller said.

However, in a short period this spring more orders were received than the total
for the four previous months, indicative of a turnaround in the truck and trailer
industry.  The company's fiscal year started April 1, and Miller predicted
hitting $9 million in gross sales.

"We've had constant growth over the years," Thompson said. "Larry didn't
throw a bunch of business at us all at once. He pulled in enough to keep it at
the right pace. Sometimes there has been more growth than at other times
because of our different customers. One of them might produce 30 trailers a
month, while another might build 230 every month."

All products are subject to rigorous quality control.

Of the top 25 trailer manufacturers putting out between 750 and 70,000
trailers a year, USA Harness does business with 10 of those companies. They
include Transcraft Trailers in Anna, Ill., manufacturer of flatbed trailers;
Cottrell in Gainesville, Ga., auto haulers; Capacity of Texas, based in Longview,
trailer jockeys; and Heil Corp. in Chattanooga, Tenn., trailers. Other customers
are General Engines in Lake Wales, Fla., and Miller Industries in Ooltewah, Tenn.

The biggest customer of New Concept Services is Big Tex Trailers. The
firm has facilities in Mount Pleasant and Odessa, Texas.

Aftermarket companies also are included in the USA Harness customer mix.
Miller said the larger firms submit orders for 100-200 pieces a week, while
the smaller companies may require only 10 pieces a month. Orders might be
for complete wiring systems or just lights or connectors.

Miller pointed out most USA Harness customers have remained with the
company five years and longer. Product delivery and quality are two of the
reasons. A third relates to the firm's innovation, which includes the development
of a sealed connector called USA Plus, for which a patent has been applied. Up to
10 circuits can be used with the connector, while other companies' connectors
only can accommodate seven. The connector also features a secondary lock.

"The lower number is becoming obsolete because of the accessories being put
on trailers these days. They have to be able to handle rotating beacon lights and
dump valves for airbags," said Miller, who used to work at Beall Trailers in
Portland, Ore., and Utility Trailer Manufacturing in City of Industry, Calif.

Another advantage of a harness made by USA Harness is its plug-in
connectors and over-molded sockets. "That process helps keep us in the forefront
because ours is a 100-percent sealed system," Miller said. "Most of the others are
only 50 percent sealed. We don't have any junction boxes with a spaghetti of
wires coming out of it."

To increase harness quality, over the past two years electrical continuity has
been tested with a computer in a dyno lab. "Harnesses are not hand-tested
anymore," Miller said. "We've taken the human element and chance for error
out of the process. We are very concerned with voltage drops, especially
when the total length of a trailer can be between 90 and 110 feet."

Quality also has been improved with the use of ultrasonic welding for
splicing copper connectors, eliminating the less reliable butt splices. "We
may have been the first in the industry to use ultrasonic welding seven years
ago," Miller said. "It makes for a very reliable product, and there is very
little voltage drop. It also is a speedy, clean process."

Voltage requirements also have been affected by the increasing use in the
trailer industry of light-emitting diodes (LED) as replacements for conventional
lightbulbs. LEDs in a harness require lower amperage draws (.33 vs. 2 amps for
a bulb) and fewer conductors. The benefits of LEDs include lower maintenance,
brighter illumination and increased number of lights on a trailer.

Under development at USA Harness is multiplexing as related to electronic
components. With input from customers, the process is being evaluated by
Dennis Baldwin, electrical engineer.

Such matters as multiplexing are discussed at meetings of the company's
Engineering Review Committee.  Besides Baldwin, the committee consists
of Miller, Thompson and Chambley. They address such problems as design,
componentry and supply.

Material supply never ceases to be a concern in the wiring harness industry,
but Miller reported USA Harness has enjoyed "good success with our suppliers.
We have good relationships with our vendors, and we work with each other."
Cable and wire are manufactured to specifications provided by USA Harness,
while mostly standard connectors, terminals, shrink wrapping and tubing are used.

"More suppliers are promising better and shorter delivery cycles, and the product
quality is good," Miller said. "One distributor has a warehouse of goods for us, so
there's no huge inventory we have to keep here. Still, we have a good variety of
materials here on a month-to-month basis. What we don't have we can get the
next day or in a couple of weeks, so we're always OK. We haven't had
problems with delivery to our customers, even those running assembly lines
that require on-time delivery."

Customer needs are met by 100 people on the staff of USA Harness and New
Concept Services. The companies are the second largest employer in
Winnsboro, a community of 3,000.

They participate in many charity and community service projects and
organizations. Because of its contributions to the community, USA Harness
was honored as the 2000 Business of the Year by the Winnsboro Chamber of
Commerce.

Besides the executives at the companies, the staffing number consists of
14 office employees, while the balance works in production, shipping and
receiving, material handling and testing. Everyone at the two firms receives a
standard benefits package of insurance coverages and 401(k) offerings.

Profit-sharing is paid 1-2 times a year, and year-end bonuses are awarded by
Chambley. "He will compensate those people who have contributed to the
company's success,"  Thompson said.

One definition of success relates to product quality, and everyone at the two
firms is keenly aware of it. "Employees are conscientious and concerned,"
Miller said. "A lot of things are brought forward by them about products and
processes. We try to educate everyone about how a product is used, and they
respond well. They take it upon themselves to be concerned about quality."

Leadership in the companies is provided by all the aforementioned people
in addition to Laura White, inside sales manager; Christine Mitchell, vice
president of finance and human resources; Cheryl Tull, purchasing agent;
and Kim Coursen, USA Harness production manager.

Everyone's effort over the next five years could help USA Harness top $18
million in gross sales, according to Miller. He based his projection on the
increasing demand in the trailer industry for more specialization. "We can
fashion a particular harness for a particular need," he said. "There's a
demand for us because of our quality, service and customization. Other
companies are not in as stable a condition because they cannot supply a
custom product the way we can."

Specializing in custom products accentuates the innovation and ingenuity
at USA Harness. Those two qualities make for an exciting place to work.
Just ask Thompson: "There's always something different going on. There's
never a dull moment here."

For further information contact USA Harness, Inc. 1201 E. Coke Road,
P.O. Box 75494. Phone (903) 342-3767 or Fax (903) 342-3772.

Larry Chambley and WHMA

Of Larry Chambley's many activities in the wiring harness industry, he
regards his participation in the Wiring Harness Manufacturers Association
(WHMA) with a high degree of pride.

As well he should, since his company, USA Harness in Winnsboro, Texas,
has belonged to the organization since it was started in 1993. He has served
as a director the past four years, and during the same period he headed the
Membership Committee. Recently he was elected treasurer, and his board
service will continue into 2004.

"I enjoy serving the association very much," Chambley said. "I am very
ortunate to serve with the other people and to help the organization. There
are very fine people on the board, and executive director Andy Larsen and
his staff have done a wonderful job. It's on account of them that we have
come as far as we have."

Board service is important to Chambley primarily because of the board
members' interaction. "I like the camaraderie between the business owners
and the CEOs," he said. "The networking and the respect of competitors for
each other are good, and it's been very educational."

Chambley pointed out that WHMA membership has benefited his company.
"It's been really fruitful for us because we've networked with and been able to
help a number of people," he said. "They visited our plant, and we visited theirs." Chambley and his staff especially have been helpful with tool-and-die work and
injection molding, both areas of considerable expertise.

Besides being in charge of membership, Chambley promoted the idea of
WHMA staging its own trade show. He noted that he has supported association
programs and events by contributing money and involving USA Harness employees,
who have given talks about insurance and purchasing.

To Chambley, actions speak as loudly as words, and he is emphatic about
people becoming involved in the association and keeping their commitments
to carry out duties and responsibilities. "You have to participate and support the
group," he said. "Lip service doesn't get it done to my way of thinking. We are
there as a group to help everybody, and we need to go ahead in a unified,
resourceful way.

"It's not about self, it's about information and what you can learn,"
Chambley said. "There's a wealth of information available because WHMA
crosses all lines with 200 companies. The association is all about companies
and individuals and what we can bring to the marketplace. People can't come
into this only with their own selves in mind."

Strength through numbers will help association members address what is
needed in their companies. He stated that better technology, such as with the
Internet, always will be needed. Since no WHMA member has the extensive
resources of a conglomerate, by companies working together they can
experience advantages similar to larger corporations.

In that way, for example, the WHMA Board of Directors has an important
role in industry growth, Chambley stressed. "The board has to generate ideas
and show a quality of leadership that we can keep the activities and interest
strong," he said. "We should not worry about whether or not we have new
members but how we handle new members. We have to motivate people and
get over any self-interest."

He suggested bylaw revisions to make sure all qualified companies have
access to WHMA even though they may compete with current member companies.
Better understanding of each potential new member's company will benefit
everyone, he stated.

Chambley sees WHMA making a larger impact on the industry.  "This organization
has a very good future," he said. "Everybody needs to look at it that way and come
up with things to make the organization stronger. We need to help each other,
especially in this global economy where the more we work together, the stronger
we will be."

Visit USA Harness at http://www.usaharness.com