THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Sunday, April 21, 1996 TAG: 9604190211
SECTION: CHESAPEAKE CLIPPER PAGE: 10 EDITION: FINAL
SOURCE: BY JENNIFER C. O'DONNELL, STAFF WRITER
LENGTH: Medium: 79 lines
Chesapeake's NKL Industries is growing by leaps and bounds. Virginia Business Magazine recently ranked NKL as the 19th fastest growing small business in the state from 1992 to 1994. NKL grew 83 percent during that period.
But the company isn't exactly an overnight sensation. The company's roots go back to 1928, when Ed Martin, a California locksmith and safe builder, moved to Norfolk and opened his own business, Ed Martin and Brothers. The company was eventually sold and renamed Norfolk Key and Lock.
In 1985, the locksmith operation was sold to Safemasters, and since then NKL Industries has focused on what has become its No. 1 product - high-tech safes.
Ray Lorenzo, chief executive officer of NKL Industries, attributes the company's success to satisfying what is a national need on the part of employers.
``Most losses from a business come from the internal thefts that happen day after day,'' he said.
The safes on the market today only resemble their predecessors in size and shape.
``The safe has changed dramatically over the years,'' said Lorenzo. ``With the advent of computers, it has been possible to computerize the safe, which changes the whole dynamic.''
NKL's most advanced safe was released for sale just weeks ago. The safe not only serves as a protector of assets, but a bookkeeper as well.
``Anyone who has access to the safe is assigned a user number, which is logged and saved in the computer for future reference. That way, if you find money or valuables missing, you have a log of everyone that's been there and when,'' said Lorenzo.
Other NKL safes offer modem access.
``That feature enables security managers to access the safe's log without being there in person. If the manager wants to revoke an employee's safe privileges, he can do it over the modem,'' said Lorenzo.
NKL's clients include food service companies like McDonald's, Hardee's, Pizza Hut and Burger King.
``We also sell locally to grocery store chains like Farm Fresh,'' he added. ``These types of businesses handle a lot of cash and need a secure device to protect the assets.''
The average NKL safe sells for about $2,000, but Lorenzo said the company is in the process of manufacturing a smaller, simpler safe for small or home-based businesses.
``That should be on the market in a few months,'' he said.
Despite the high-tech nature of the product, Lorenzo said even the most advanced safe takes only 12 man-hours to produce. All the safes are assembled at the company's location in Cavalier Industrial Park.
Once the product is complete, a representative delivers the product and installs it, which requires bolting the safe securely to the floor.
``Most safes weigh about 400 pounds, but if you get four guys together, you could move one. That's why we bolt them down,'' said Lorenzo.
Just two years ago, NKL added a side-business to their venture when they bought Chesapeake Door and Hardware, a manufacturer of steel security doors. Last year, NKL sold $1.3 million in doors. The company is hoping for $2 million in door sales this year. ILLUSTRATION: Photo by GARY C. KNAPP
Ray Lorenzo, left, and Mike Smith are partners in NKL Industries, a
fast-growing business.
Graphic
Just the Facts
Product: Manufactures safes and security doors
Location: Cavalier Industrial Park, Western Branch
Number of Employees: 60
1992-1994 growth: 83 percent
1994 Revenue: $6.764 million
Other: NKL Industries spent $1.7 million on expansions last
year.
by CNB