Allred products offer strong line for Defense

* Major players: J.B. Allred, president and chief technical officer, and Cherie Allred, vice president of marketing and administration.

* What does the company do? The company has three missions. The first is engineering and product development. The second is composite design and manufacturing.

* What makes up the bulk of your business? Initially, the company's focus was entirely on engineering and product development for corporate clients. As the company matured, it became increasingly more manufacturing-based. "We manufacture components for clients and produce our own proprietary products," explains J.B. Allred. "We remain, however, a technology-driven company. This is our greatest strength."

* What are some examples of your work? "Due to the nature of our work, most of the designs we have done are confidential," Allred says. "Initially, we designed complex surgical hand pieces for cataract removal, sinus and middle-ear surgeries, and interventional MRI. More recently, we have designed and built sophisticated carbon-fiber components for the [U.S.] Department of Defense. Although we cannot discuss this project, our own product - DragonPlate - is a good representation of the quality of our carbon-fiber parts."

* How does the company get its clients? The company maintains long-term relationships with its clients and typically undertakes successive projects for the same customer. New clients generally come from customer referrals.

* Company history: Before starting his own company, J.B. Allred developed and managed research and design departments for several medical-device manufacturers, including America Hospital Supply, Cooper Vision, Welch Allyn, and Bristol-Myers. He also is a pilot who designed and built aircraft incorporating composite structural components. In 1993, he founded Allred & Associates and incorporated it in May 1995. Initially, it started in Allred's home, designing ophthalmic and ENT instruments. Soon after starting the company, it hired its first mechanical designer. Within the first year, the company expanded to its first facility, in Elbridge. It hired another mechanical designer and an electrical engineer and began a program of hiring student interns from the local community college. The company was contracted to develop a series of devices for interventional MRI surgery in the MRI. At this time, the company began the design of its first proprietary product - the Gemini Carving Duplicator. The carving duplicator became its "postgraduate course" in manufacturing, marketing, sales, and Internet presence, Allred says. The company has since sold carvers throughout the U.S., as well as in 24 foreign countries. In April 2000, the company relocated briefly to Waterloo, where it continued to refine the Gemini, and consulted on ophthalmic surgical devices and tools for interventional MRI. It began to consult in the development of structural and composite components. In October 2002, the company relocated to the Phoenix Building in Auburn. Although it continued to consult in medical devices and MRI, the company's percentage of structural and composites business began to increase.

* How did the company diversify its offerings? While in Auburn, the company developed its second proprietary product, DragonPlate. "Because this product drew heavily on our experience with marketing the Gemini Carver, we were able to quickly develop a market presence and establish sales," Allred says. "Concurrently, our manufacturing volume of customengineered, composite components dramatically Increased. We continued to hire more full- and part-time employees in both the design and manufacturing sides of the business." The company expanded its manufacturing capabilities by renting 4,000 square feet in the former Auburn Spark Plug Building. Corporate headquarters and engineering officers remain at the Phoenix Building.

* What's in your business plan? The company's short-term strategy is to expand its product offerings and develop new products, which Allred declined to disclose but said would "soon be introduced." Its long-term strategy is to develop a series of proprietary products that draw upon the company's engineering and technical strengths and sell into niche markets. "We are able to rapidly adapt to take advantage of new opportunities in both the consulting and product aspects of our business," Allred says. "Once involved in an endeavor, we thoroughly research the technology and apply meticulous attention to detail."

* What kind of revenue growth do you expect? "Based upon history, we expect to see 25-percent growth per year."

* What obstacles have you overcome? Allred says the company survived three obstacles. First, learning how to manage a small, technology-based business vs. working in mid-sized corporations. Second, surviving the early years, .when we were small and resourcedeprived," Allred says. "We overcame this with many hours of hard work." Third, surviving the most recent economic downturn, which was overcome "because we were adaptive and creative," he adds.

* Any advice to small business owners? "You make money by hard work and sound business practices," Allred says. "Produce the highest-quality products at a reasonable price. Take good care of your customers. Trust your employees and encourage them to work to their potential. If you do an excellent job, opportunities will come to you."

Allred & Associates, Inc.

2 South St., Auburn, N.Y. 13021

Phone: (315) 252-2559

Fax: (315) 252-0502

Web sites: www.jballred.com, www.wood-carver.com, www.dragonplate.com

Square footage: 7,000

Employees: 14

Year founded: 1993

Annual revenues: $3.4 million (CNYBJ estimate)