Looking to grow
Regional economic observers know which tech companies are on the top rungs of the industry ladder and which firms are clawing their way up.
On the top level, measured by revenue and market clout, are tech heavyweights such as Pullman-based Schweitzer Engineering Laboratories and Liberty Lake-based Itron Inc.
One level below sit solid businesses that have carved out a dominant market position, such as rugged laptop maker Itronix, now part of global giant General Dynamics.
Below those are regional tech companies that are a few big steps or major deals away from breaking out. This could be the year, say area tech industry-watchers, that some of those regional companies climb up another rung.
Bill Kalivas, who has worked with and provided advice for area tech businesses for more than five years, said companies in that position include software developer Next IT, fuel-cell developer ReliOn and Spokane Valley-based telecom networking provider World Wide Packets.
“Those firms have all found their niche and are doing steady business,” Kalivas said.
Another company poised to reach a higher rung, according to John Overby, a director of client services at Sirti, is MatriCal, a pharmaceutical equipment manufacturing business.
MatriCal has been based in Sirti’s downtown incubator for six years. Overby said he’s impressed with the leadership of co-founders Kevin Oldenburg and Dan Roark.He believes some larger companies could come calling, trying to buy out MatriCal. But the two principals are cautious and enjoy running the firm too much to sell out quickly, Overby said.
Mergers and purchases will likely be a key theme over the coming year, added Tom Simpson, managing partner of Northwest Venture Associates.
Simpson tracks the deal flow in the region, both among tech businesses and other growing companies. He predicts “continued growth and investment and expansion in the tech sector.”
Simpson and others wouldn’t be surprised to see additional efforts made by much bigger companies to buy local businesses such as Spokane’s GenPrime, a biotech firm that’s found some success selling a toxic-substance identification kit; and TriGeo Network Security, based in Post Falls. TriGeo develops network security systems for small and medium-sized companies.
“They are among those regional companies who’ve been funded in last three to five years who are hitting their stride and have a dominant presence,” said Simpson.
According to Kalivas, one regional success story poised for bigger things is Spokane Valley-based ReliOn.
The 70-worker company has already landed several rounds of significant venture capital funding to help market and develop its key product —modular hydrogen fuel cell technology.
Kalivas and others in the area consider that fuel cell technology a leader in the industry and a perfect solution for companies needing affordable, reliable backup power systems. Most customers for ReliOn’s products — industries such as telecommunications and the federal government — currently rely on traditional stationary battery packs.
Company CEO Gary Flood points out the company is already the market leader in its niche and, “we’ve successfully established widespread name recognition for ReliOn.”
The next phase will be to help the market move from gradual adoption to significant product purchases, he said.
When that happens, he predicts ReliOn and its fuel cells will see the growth Itron saw, when power utilities realized they had good reason to spend more money on that company’s automated metering equipment.
“We should see a rapid growth in total revenue and growth in how we look at the (fuel cell) market and how we expand our market applications,” Flood said.