RELTEK’s International Success Story Is Engineered of Relationships, Logistics and Technology

Every business has its start, and for Bob Lindberg, it was in his home garage, around the kitchen table and on the back patio.

In the early ‘90s, Bob had been working as an engineer for a leading company in cable and connector assemblies used in industrial-military high-performance products. As the Chief Engineer, Bob observed problems related to protecting electrical components from harsh environments, and invented a solution that incorporated modern, plastic materials. Then, when the company downsized and Bob’s position disappeared, he was motivated to pursue an even bigger idea.

For several years, he explored concepts to solve the problems of protective coatings and sealants for bonding difficult-to-bond substrates and dissimilar materials in harsh environments—that didn’t yet exist in the market. The research culminated in 1996, with breakthrough technology.

“In the company’s early days, the founder of Ellsworth Adhesives [the leading distributor of engineering adhesives, specialty chemicals and dispensing equipment] came and visited me in my garage,” recalls Bob about their original “manufacturing facility.” “The living room was our office and the patio and garden were our conference room. He saw the RELTEK market strategy as unique as well as the only one in the engineering adhesives and coatings market. That’s how we began and grew from that tiny world.”

Or rather, around the world. Bob immediately began reaching out to people he knew from his years working as an engineer and consultant. He dedicated hours each day to making cold calls and writing technical articles. He also had a website built to take advantage of the emerging internet. He was getting the word out about how he could solve problems that prior to RELTEK, weren’t solvable, and with solutions that are very attractive to customers.

Just two years in, in 1998, RELTEK’s first international customer took notice. U.K.-based JDR Cable Systems was already a major provider of subsea cable technology and offshore oil services at the time. “They work in ocean/marine industry building components and I was very much involved during that time with the Marine Technical Society, leading conferences and giving technical talks,” says Bob. “JDR noticed I had also solved a problem similar to theirs for the U.S. Navy.”

RELTEK’s reach into global markets continued. In fact, the company enjoyed a solid 15 years of being the only provider of adhesives, sealants and coatings for specialty market applications for harsh environments and difficult-to-bond substrates, domestically and internationally before much larger companies like 3M discovered the market. Even so, RELTEK maintained its edge through consistent service and quality.

“We have a very different marketing/sales strategy from our competitors,” Bob says. “Typically, if you call them with a technical problem, they will recommend several products, send samples and hope something sticks,” says Bob, pun intended. “In contrast, at RELTEK, we do the engineering analysis and design to provide the best solution, and we have confidence it will (almost) surely work. The products we create are very high performance, so frequently our customers come to us after they have tried everything off the shelf and nothing seems to work. We can provide the solution—that’s why we promise ‘while solving the insolvable with extraordinary service, we stick to you forever.’”

During this time, Amy Huse, Bob’s middle daughter and now general manager and head of sales, came to work at RELTEK. She started helping out with administrative work around the office, then moved into accounting, which was great foundational knowledge when she transitioned to sales. “I much more enjoy this customer sales side given my background,” she says.

One major tool that has propelled their growth in global markets over the last 15 years is the company’s online presence. “In the last 10 years especially, the internet has been everything because everyone has access to it through a computer,” shares Amy. “A huge portion of our growth has come from our website. It has even overtaken word of mouth.”

Still, this growth hasn’t been without challenges—many of which are unique to RELTEK’s niche market. For one, it can be extremely difficult to ship regulated hazardous materials from Santa Rosa, where RELTEK is based, into international countries—a few countries actually refuse to receive them by air. Think of HAZMAT materials like gasoline or fireworks, all the way down to facial creams. Some of RELTEK’s products fall into the corrosive category, and while a moderate classification, they have to be packaged a certain way and only certain shippers can transport them.

“Finding the actual logistical people and transport companies who can handle and help with these types of materials is extremely important,” says Amy. For example, RELTEK has a growing customer base in India, a country that’s very limited on what ports and areas can accept this classification of materials. “Part of our success there has been learning how to get the products over there and who can help ensure they get from the airport to the customer.”

U.S. relations with different countries have also come into play. Several years back in China, for instance, RELTEK was trying to ship several large palettes of product to their distributor there. “At the time, the U.S. and China Administrations were not getting along when it came to tariffs and that had a trickle-down effect for us,” recalls Bob. “Customs there was holding U.S. goods coming into the country, resulting in our product sitting there for over two months in storage with our customer unable to get it.”

About a month in, RELTEK reached out to their local Department of Commerce in San Francisco for help. “We thought it was a long shot, but called and said, ‘Here’s what’s going on; we’re wondering if there’s anything you can do,’” tells Amy. “They reached out and went through the steps with their colleagues in China and were able to help get our product out.”

Challenges like this became even more complicated during COVID-19 as products were held up even longer in transportation and ports. As a result, RELTEK had conversations with customers and their distribution partner in China about ordering as early as possible because of the uncertainty. They also had to work even harder to establish relationships with decision-makers in these countries that sometimes don’t agree on the rules. “It just depends on who’s running each particular office,” says Amy.

Today, RELTEK’s business is already positioned to reach 50 percent in direct exports by the end of 2022. Ten years ago, they were at 15 percent and last year they were at 35 percent. In addition, RELTEK products are also used as components in systems manufactured and sold around the world by companies like Boeing and Sercel.

RELTEK achieved this growth, first by maintaining long-term customer relationships and supporting their international growth. In addition, RELTEK is establishing more partners and points of distribution. They currently have a national distributor in China and are in the process of developing a second in India. They are also exploring partnerships in Europe, Canada and Mexico.

Additionally, they are re-envisioning their marketing. “We’re looking at our marketing with a new view,” says Amy. “We want to make it multi-dimensional because marketing is key to finding and reaching new people on international and domestic levels.” And, as Bob says, “Ultimately, it’s all about superior customer service and taking advantage of formidable export resources such as the Department of Commerce and Small Business Administration (SBA) programs, all designed for the small business to prosper.” That’s something that hasn’t changed since RELTEK’s beginning.

RELTEK’s Tips For Engineering International Success

1. People: “You have to know someone who can make a difference for you to get established,” says Bob. “You can’t just walk in and say, ‘I’m here’ and start selling. You need local people involved in creating that for you.” These people can help in key access, while overcoming business barriers in politics and language.
2. Government Resources: “You have to utilize local government resources in your county, region and state,” says Amy. “These are key. Reach out through their websites and go to their seminars. I attended a webinar about growing your business internationally, for instance, and got several resources from presenters and attendees who could help answer questions.”
3. Associations: “We have an active export association that I started a relationship with very early on,” shares Bob. “I would attend their monthly meetings and have met people at these meetings and maintained those relationships.” In fact, one played major role in RELTEK’s SBA funding and expansion into China.
4. Funding: “Finding a bank that will back you, is willing to take on entrepreneurial risk and understands the type of money it takes to build your export market is very important,” says Bob. “Although it could be, this likely won’t be your local bank. Look at private banks and the SBA.” Also, keep in mind that everything costs more internationally—from transporting product to sending people to train local teams.
5. Timeline: “It takes way longer than you think or guestimate,” suggests Amy. “If you’re thinking 6 months, 2 years might be more realistic.”