E.F. Johnson Co. last Friday spun off its E.F. Johnson Services wireless construction unit into a separate subsidiary in order to better court non-traditional customers.
The services unit, in operation for 11 months, has been contracted for project management, engineering and construction services to such companies as AT&T Wireless Services Inc., PriCellular Corp. and Motorola Inc.; now the unit will pursue other high-profile, but not necessarily high-tier, companies-wireless or not. Of particular interest are rural cellular or personal communications services licensees.
“It’s no secret that the wireless business is exploding on a number of fronts,” commented Mark Allen, EFJ’s vice president of engineering who also has been named vice president and general manager of the new subsidiary. “We felt that providing services was an opportunity that naturally fit EFJ’s years of systems-building experience. Our initial success has spurred us into taking the next step: making E.F. Johnson Services a separate unit, which will help the company achieve even bigger goals.”
The 74-year-old parent company has been identified mostly by its ties to the domestic private radio industry, but Allen believes his unit could change all that. “Obviously, we don’t sell cellular or PCS products, but we do know how to build out the network,” he said. “We want to become a turnkey construction company. We’re looking forward to adding a whole new category of customers.” Allen added that EFJ Services “wants to slip into the niche” now being filled by such contractors as Fluor Daniels and Black & Veatch.
According to Allen, EFJ Services “already has enough business booked in 1997 to project double-digit [revenue] increases over last year.” The subsidiary also plans to escape from its mostly Midwest geographic presence to a more nationwide and then a global footprint, including Central and South America. In addition, it will exhibit at non-private-radio trade shows and will mount a new advertising campaign.
