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HEATHKIT® AND HAM RADIO 1 ® Chas Gilmore W8IAI and Cliff Nazelli W8SKQ

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HEATHKIT®AND HAM RADIO

1

®

Chas Gilmore W8IAI and Cliff Nazelli W8SKQ

Tonight

• Who Are We

• My Times At Heath

• Quick History Of The Early Heath Company

• Evolution Of The Kit Business (Focus on Ham Radio)• The Early Years

• The 60s And 70s

• The 80s And Early 90s

• Only The High Points

• The Heathkit Development Process

• Q And A (Hold Questions To Then Unless)2

Who Are We

• Co-Owners, PPM, Inc. Specialty Electronic Instruments

• Chas• First Call K1KJY, Northern Vermont Late 1950s

• Later W1APH Second Station

• W8IAI, 1966 When Started At Heath

• Cliff• First Call K8IKZ, 1950s, Detroit MI Area

• Later KC8NFE

• W8SKQ—His Dad’s Original Call From 1930s

3

ACKNOWLEDGEMENTS

• Presentation About The Heath Company Of Benton Harbor, MI Thru Early 1990s

• Formal Company Name: The Heath Company• Heathkit® Is A Registered Trademark Of Heath Company• Presentation DOES NOT Cover New Incarnation Of Heath Company• Heath Assets Purchased In Bankruptcy Sale--2012• New Company is: Heath Company (WWW.HEATHKIT.COM)

• Heathkit ® in all uses, the Heathkit name, the Heathkit logos and slogans are registered trademarks of Heath Company

4

Some Questions

• How Many Have Heard Of The Heath Company / Heathkits?

• How Many Own A Heathkit Product?

• How Many Have Built A Kit—Of Any Brand?

• How Many Have Built A Heathkit?

• How Many Have “Home Brewed” An Electronic Project?

5

My Times At HeathOr, Working In A Candy Factory

• 1966 - 1977

• Design Engineer, Scientific Instruments

• Engineering Section Manager

• Product Line Manager, Instruments, Calculators, Automotive

• Director Engineering, Technical Products• Ham, Instruments, Computers, Automotive

• 1984 – 1993

• Vice President Product Development

• Executive Vice President and General Manager

6

Heath HistoryThe Early Years—1910 - 1935

• Founded 1910, Chicago

• Became Heath Areoplane Co.

• Acquired By Edward Heath 1912

• Kit Air Planes Mid 1920s—The Parasol

• Edward Heath, Killed 1931 Parasol Test Flight

• Acquired Moved To MI, Bankrupt In 1935

7

Heath HistoryThe Early Years—1935 - 1946

• Acquired 1935 Howard Anthony

• Moved To Benton Harbor MI

• Secured WWII Contracts

• Post WWII Downsized

• Company Split—Aircraft Parts & Electronics

8

Heath HistoryThe Early Years—1935 - 1946

• Howard Took The Electronics

• Howard The Creative, Helen The Business Manager

• Main Business 1946 Selling Surplus Electronic Parts

• 1946 Bids On Lot Of WWII Electronic Parts

9

Heath HistoryThe Early Years—1947 - 1954

• Acquired Surplus Parts—Boxcar of 5BP1 CRTs

• Kit Oscilloscope—The O-1 @$39.50, Oct ’47 50 KCs

• Kit VTVM—The V-1 @$24.50, Dec ’47

• Surplus Parts Sales Quickly Dwarfed By Kit Sales

10

Heath HistoryThe Early Years—1952

• Mostly Test Equipment

• The O-1 Now O-7

• The V-1 Now V-7

• Over 15 Kit Instruments ’52

• Over 44 Kits Late ‘53

• All Kit Company

• Growth To Multiple $ Millions

• Over 200 Employees

• Multiple Buildings11

Heath HistoryThe First Ham Rig

• The AT-1

• Christmas 1951

• $29.50

• 6AG7 Oscillator, 6L6 Amp, 5U4 Rectifier

• 80, 40, 20 And 10 Meters

• CW, 12 – 16 Watts

• Socket For VFO

12

Heath HistoryAT-1

13

Heath HistoryThe First Ham Accessories

• VF-1 VFO $19.50 ’52 -- 6AU6

• AC-1 Antenna Coupler $14.50 ‘53

• GD-1, 1A, 1B Grid Dip Meter ’52

• 2 – 250 MCS—350 KCS (Optional)

• 6AF4 or 6T4 (Depend On Inventory)

• >15,000 Sold First 2 Years

• Replaced 1960 By Tunnel Dipper14

Heath HistoryDX-100• Introduced 1955 $189.95

• 160 – 10 Meters (Including 11)

• 100 Watts AM, 120 Watts CW

• Early Use Of Dual 6146 Finals

• VFO and 4 Xtal

• 100 LBs, Copper Plated Chassis

• DX-100 B 1958 $189.95

15

Heath HistoryHam Products 1956

• DX-100 $189.50

• AR-3 $30.25

• VF-1 $19.50

• AT-1 $29.50

• DX-35 $56.95

• AM-1 $14.50

• AC-1 $14.50

• QF-1 $9.96

• GB-1B $19.50

16

Heath HistoryFull Product Lineup 1956

• Ham (9 Products)

• Test & Measurement (42 Products With Focus On Service Instruments)

• General (4 Products)

• Audio (11 Products)

• Top Scope Now O-11 $69.50

• OM-2 $42.50 (1 Mcs)

• VTVM Now V-7A

• 7 Other Meters

• 5 Generators

• 2 Power Supplies

• CRT, Tube, Cap, Vibrator Testers

17

Heath HistoryFull Product Lineup 1956

• Ham (9 Products)

• Test & Measurement (42 Products With Focus On Service Instruments)

• General (4 Products)

• Audio (11 Products)

• Broadcast Receiver

• Radiation Counter

• Crystal Receiver

• Enlarger Timer

18

Heath HistoryFull Product Lineup 1956

• Ham (9 Products)

• Test & Measurement (42 Products With Focus On Service Instruments)

• General (4 Products)

• Audio (11 Products)

• Preamplifier

• AM And FM Tuners

• 5 Amplifiers ($18.65 To $69.50)

• 2 Speakers

• Electronic Cross-Over

19

Heath HistoryFull Product Lineup 1956

• Ham (9 Products)

• Test & Measurement (42 Products With Focus On Service Instruments)

• General (4 Products)

• Audio (11 Products)

• Sales $5+ Million

• Multiple Buildings In Benton Harbor, MI

20

Heath HistoryThe Transition Years—1954 - 1962

• Anthony Killed In Plane Crash—23 July 1954 Test Flight

• $60,000 de Havilland Dove

• Frank Lloyd Wright Home

• Helen Anthony Sells To Daystrom, 2-1-1955

• Moved To St. Joseph MI 1958

• 150,000 SqFt Plant—”H” Shape

• Daystrom Acquired By Schlumberger 1962

21

Heath History1960s—Years of Growth

• 1961 Catalog—100 Pages

• 180 Products

• 29+ Ham Products

• 36+ Instruments

• 50+ Audio

• Marine

• Educational

• Automotive

• CB22

Heath History1961 Ham Top End

• Mohawk Receiver $299.95 CW-AM-SSB

• Apache Transmitter $252.50 CW-AM

• 160 – 10 Meters

• Warrior Linear Amp $229.95

• 1 KW CW/SSB, 500 W AM

• 80 – 10 Meters

• SSB With SB-10 $93.50

23

Heath HistoryMobiles

24

• MR-1 Receiver And MT-1 Transmitter Mobile AM $119.95 And $99.95 ‘59

• HR-20 Receiver And HX-20 Transmitter Mobile SSB--$134.95 Each ‘62

• HW-10 and HW-20 ($199.95) Mobile 6 & 2 Meters Shawnee & Pawnee ‘61

Heath History1961 VHF

• Benton Harbor Lunchbox Series

• Tenner, Sixer and Twoer

• Super Regenerative Receivers

• 35 – 45 Watts

• Completely Self Contained

• Catalog Often Included Schematics

• 1960 – 1971 (2 & 6 Meter)

25

Heath HistoryFrom 1961 to 1991

• Heathkit Cantenna HN-31

• 50 Ω 1KW Dummy Load

• <1.5 VSWR To 300 MCS (MHz)

• One Gallon Paint Can

• You Supply Transformer Oil

• Updated HN-31 Silk Screened Power Information ($24.95)

• Over 200,000 Sold In 30 Years

• HN-31 A 1983 – To 400 + MHz

26

Heath HistoryFrom 1961 to 1991

• Heathkit Cantenna HN-31

• 50 Ω 1KW Dummy Load

• <1.5 VSWR To 300 MCS (MHz)

• One Gallon Paint Can

• You Supply Transformer Oil

• Updated HN-31 Silk Screened Power Information ($24.95)

• Over 200,000 Sold In 30 Years

• HN-31 A 1983 – To 400 + MHz

27

Heath HistoryThe SB Line

• Introduced in 1964

• HF SSB Line 80 – 10 Meters

• SB-300 Receiver $265.00

• SB-400 Transmitter $325.00

• SB-200 Linear Amp $200.00

• Featured LMO (Linear Master Oscillator) 5.0 – 5.5 MHz

• Later SB-301, SB-303, SB-401, SB-220

• Accessories Followed

Collins S-Line Look-A-Like??

28

• SB-200 Linear Amp $200.00 1964

• HF 80 – 10 Meters 1,200 Watts

• SB-200A $449.94 1978

• HF 80 – 15 Meters (FCC Rule)

• Outsold All Linear Amplifiers Over Its Life – ’64 To ‘83

• SB-220 Linear Amp $369.95 1970

• HF 80 – 10 Meters 2,000 Watts

• SB-221 $599.95 1978 80 – 15 Meters

Heath HistoryThe SB Line Amps

29

Heath HistoryThe SB Line Transceivers

• SB-100 Transceiver $360 1965

• HF 80 – 10 Meters

• SB-101 $370 1967

• SB-102 $380 1970

• SB-110 6 Meters $299 1965

• SB-110A $299 1969

30

Heath History1963--The Monobanders

• Introduced @ $119.95

• Single Band Transceivers

• 80, 40 and 20 Meter Versions

• Entirely On Single Circuit Board

• Couldn’t Be Done

• Same Engineer Did SB-100/101

• “A” Versions ‘66 $99.95 $104.95• Selectable USB/LSB

• Microphone Connector

31

Heath History1960s For The Novice

• DX-35 > DX-40 > DX-60 > DX-60A > DX-60B ‘69 $79.95

• AR-3 > HR-10 > HR-10B ’67 $79.95

• VF-1 > HG-10 > HG-10B ’67 $37.95

• NEW 1969 HW-16 Novice Transceiver $99.50

32

Heath HistoryNon-Ham 1960s Introductions

• Color TV—Christmas 1963

• 21” Round Tube

• $349.00 TV + $49.00 Cabinet

• UHF Tuner Optional $20.00

• Tuners Pre-Built

• Innovative Engineering For Alignment

• First Of Major Heathkit Product Line—4 Color & 1 BW In 1969

33

Heath HistoryWhat Was I Doing?

• EU-805 Universal Digital Instrument

• 12.5 MHz Counter/Timer

• 0.05% DMM 1 Gohm Input Z

• Fully Assembled And Tested $1,350.00 Or $1,030 W/O DMM

• Part Of Heath Malmstadt-Enke Educational Products

34

Heath HistoryThe 1970s Diversification & Winds Of Change

• Instruments

• Amateur Radio

• Audio

• TV

• Weather Instruments

• Clocks

• Educational Products

• General

35

Heath HistoryHam Products 1970• 44 Ham Products 1970 Catalog

• SB Line -- Expanded• HF Receiver SB-303

• HF Transmitter SB-401

• HF Transceiver SB-101

• HF Linear Amps

• 6 Meter Transceiver

• 2-Meter Transverter

• 4 Station Accessories

36

Heath HistoryField Day Early 1970s

• Heath Amateur Radio Club –40+ Members

• Over 25% Of Heath’s 1,500 Employees Hams

• Heath Issued QSL Card

37

Heath HistoryThe FM Rigs

• HW-202 Spring 1973 $179.95

• 6 Channel Xtal Controlled

• 10 Watt

• Optional Tone Burst Encoder

• Accessories:• 40 Watt Amplifier

• 120 VAC Power Supply

• VHF Wattmeter

38

Heath History2nd Generation FM

• HW-2036 Synthesized Transceiver

• Christmas 1975 $289.95

• 10 Watt

• W/Built In Tone Encoder

• HW-2021 HT $ $169.95

• 1 Watt, 5 Channel Xtal

• Auto-Patch Encoder $39.95

39

Heath HistorySolid State HF

• SB-104 SS HF Transceiver

• Christmas 1974 $699.95

• 80 – 10 Meters

• Synthesized Frequency Control

• 100 Watts

• SB-644 Remote VFO $119.95

• SB-230 Conduction Cooled 1KW Linear Amplifier $369.95

40

Heath HistoryThe BIG Change

• Altair 8800 Jan ’75 Popular Electronics

• Heathkit Computer Development—One Becoms Many

• H-8, H-11, H-9 and H-10 W/Accessories Aug ’77

• 1977 Computer Sales (1/3rd Year) 1/3 Total Ham Sales

• HUG (Heath Users Group)

• REMark Magazine41

Heath HistoryZenith Purchase

• October 1979

• Big Focus—Acquire A Personal Computer Manufacturer

• Selling Price Said To Be $64.5 Million

• Heath Computer Business >$30 Million 2/3rd Kits 1/3rd Assembled

• Computers 1/3rd Heath Business In 2 Years

• Heath Data Systems (HDS) Became Zenith Data Systems

• ZDS >$225 Million By 1983

• Separate Corporation To Run 55 Heath Stores

42

Heath HistoryHam In The ’80s

• SS-9000 HF 160 – 10 Meters—All WARC Bands $2,795.00

• Very Feature Rich—No Options

• Was To Be SS-8000—Converted To Assembled -- Kit Too Complex

• PS-9000 Power Supply/Speaker/Clock $295.00

• Introduced 1982

• Discontinued 1984

43

Heath HistoryHam In The ’80s• HW-5400 80 – 10 Meters—All

WARC Bands $699

• Complex Kit To Build—Evolved To Many Pre-Assembled Boards

• HWA-5400-1 Power Supply/Speaker/Clock $199.95

• Introduced 1983

• Discontinued 1984/5

44

Heath HistoryHam In The ’80s and Early ’90s

• Focus On Unique Accessories

• TNCs HD-4040, HK-232

• Antenna Rotator “Intellirotor” HD-1780

• CW Keyboard “UltraPro” HD-8999

• Most Accurate Clock GC-1000

• >50 Small Accessories (Many <$100)• Code Practice Oscillator

• VLF To HF Converter

• Antenna Switch

• Noise Bridge

• Etc. 45

Heath HistoryZDS And Heath Sold To Groupe Bull

• Groupe Bull French National Computer Company

• Purchased ZDS And Heath From Zenith December 1989

• Sale Approximately $500 Million

• ZDS Sales Approximately $1.5 Billion

• TV Sales About Same

• Both Losing Money

• Heath A Small Part Of Transaction

46

Heath HistoryThe Exit

• Exit Kit Business March 1992

• Heathkit Educational Systems (HES)• Individual Learning Programs

• High School & 2 Year Technical Schools

• Private Mid 1990s--Bankrupt 2012

• Heath/Zenith Reflex Continues:• PIR Lighting Products

• Wireless Door Bells

• Home Depot, Lowe’s, Etc.

• Independent 1995 MBO HIG

47

Heath Success Factors

• Savings

• Burgeoning Interest In Electronics

• Product Development Process

• “We Will Not Let You Fail”

• Customer Service/Tech Correspondence

48

Heath Success FactorsEarly Years—Late ’40s – ’50s

• Many GIs From WWII & Korea With Electronics Training

• Kits Saved Money--Really• Electronics of the Time Costing: 50% Parts 50% Labor

• Often 80% of Functionality/Specs

• Save 30% - 50%

• Electronic Products Not All That Common—Needed Knowledge

• Electronic Products Not Reliable—Great Service Market

• “Dad’s World” Environment

• Company Culture—Everyone Was A Techie/Kit Builder

49

Heath Success FactorsThe Product Development Process

• Why Kits Successful With Non-Technical Builders

• Emerged Late ‘50s & ‘60s

• Product Planning/Marketing

• Product Line Managers

• Dedicated Engineering Groups

• Manual Departments

• Product “Proofing” Process

• Extreme Attention To Detail

50

Heath Success FactorsProduct Line Managers

• PLMs Each Major Product Line• Audio Amateur Radio

• Education Instruments• Hi Fi TV

• The Product Advocate

• Product Responsibility Birth To Death

• PLM Defines Product—Market, Function, Features, Specs, Pricing

• XPDC Approves Development—Phase 1—Later Phase 2 & 3

51

Heath Success FactorsDesign Engineering

• Engineering Group Each Major Technology

• 10 – 15 Engineers/Technicians & Chief Engineer Each Group• Audio

• Amateur Radio

• Education

• General

• Instruments

• TV

52

Heath Success FactorsManual Department

• Same Size As Design Engineering

• Manual & Engineering Hours Equal

• Half Manual Writers Half Illustrators

• Illustrations Better Than Photos

Illustration With Deliberate Distortion53

Heath Success FactorsComponent Engineering & Production

• Component Engineering • Approves Samples (Minimum 6) For

Each New Part

• Detailed Part Analysis

• Guide For Production QA Dept.

• Production• Incoming QA—Rigorous MIL-STD-104D

• Very Careful Packaging

• Parts Count

• Regular Audit—Line Proof

• Vertical ManufacturingHeath Paint Shop—Electrostatic Spray

54

Heath Success FactorsProduct Development Process I

• Engineering Completes Feasibility Study (Phase 1)

• Then Detail Design (Phase 2)

• Engineering Complete With 2 Working Prototypes

• 5 Sets Of Parts Transferred To Manual Department

• Engineer Provides Circuit Description, Schematic, Etc.

55

Heath Success FactorsProduct Development Process II

• 5 Sets Of Parts Transferred To Manual Department

• Manual Written/Illustrated Consuming 2 Sets Of Parts

• Engineer, Chief Engineer & PLM Build 3 “Pre-Proof” Units

• Evaluation Engineering (1970s) Ensures Products Meet Requirements

• Manual Department Edits To Create Final Manual

56

IP-2711 Pre-Proof

Detailed Pictorials Tracking Build Time 57

Heath Success FactorsProduct Development Process III• Production Designs Packaging & Pilots 25 – 30 Units

• Component Engineering Approves Vendors

• 25 Heath Employees Selected For “Proof Builds”• At Least One Proof-Builder Is Novice

• At Least One Proof-Builder Is Very Experienced (10+ Prior Builds)

• Typically Not Pre-Proof Builders

• Proof-Builds Sent Home With Proof-Builders—Not Built At Work

• When Complete Evaluation Engineering Reviews Each Unit

• Manual Review By All Proof Builders—Conducted By Writer

• Last Proof Build Units Become “Post Proofs” If Too Many Errors58

Interesting Factoids

• Customer 95% Male—40% Technical

• Mainly Mail Order Business To Mid-1960s

• 50/50 Mail Order/Retail By Late 1970s

• Heath Had Its Own ZIP Code

• Daily Weight Of Mail On Hot Sheet

• First Store Opened 1962—In Late 1970s Over 50 Stores

• Plant In St. Joseph MI Expanded 7 Times—150,000 to >550,000 SqFt

• Subsidiaries In Canada, England, Germany, France

59

Interesting Factoids• Moved Back To Benton Harbor

1991—Refurbished 90,000 SqFtK-Mart

• Over 90% Of All Service Problems From Poor Soldering

• World’s Largest Manufacturer Of Electronic Products In Kit Form

• Late 70s Sales Equivalent To >$400 Million Today

60

Heathkit References• Chuck Penson WA7ZZE

• Heathkit Test Equipment Products ISBN: 978-0-615-99133-7

• Heathkit A Guide To The Amateur Radio Products ISBN: 13: 978-0-94301623-8

• Both Out Of Print—QRZ.COM WA7ZZE Has Link To On Line Versions

• Terry Perdue K8TP—Former Heath Engineer• Heath Nostalgia Self Published (Out Of Print)

• Heathkit - The Early Years Terry A. Perdue ISBN: 0-9637627-1-0 (CD-Pictures)

• Terry Offers CD For $15—Now Includes PDF Of Book

• Lou Frenzel W5LEF Electronic Design Magazine Blogs (Created HES And Marketing For Heathkit Computers)

• Heathkit Groups: Facebook and LinkedIn

• Many, Many Websites61

Photo Credits

• Photos On The Following Slides Taken From “Heathkit—The Early Years” Copyright 2001 By Terry Perdue:

• 7, 8, 9, 10, 11, 12, 14, 15, 16, 21, 22, 23, 24, 25, 26, 27, 49, 50,

51, 52, 53, 54, 55, 56, 57

• All Other Photos Public Domain

62

Heath And Heathkits

•Time For Q & A

63