HEATHKIT® AND HAM RADIO

®

Chas Gilmore W8IAI and Cliff Nazelli W8SKQ

1 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 Heath Or, 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, , Automotive • 1984 – 1993 • Vice President Product Development • Executive Vice President and General Manager

6 Heath History The 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 History The Early Years—1935 - 1946

• Acquired 1935 Howard Anthony • Moved To Benton Harbor MI • Secured WWII Contracts • Post WWII Downsized • Company Split—Aircraft Parts &

8 Heath History The 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 History The 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 History The 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 Buildings 11 Heath History The 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 History AT-1

13 Heath History The 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 Dipper 14 Heath History DX-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 History Ham 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 History Full Product Lineup 1956 • Ham (9 Products) • Top Scope Now O-11 $69.50 • Test & Measurement (42 • OM-2 $42.50 (1 Mcs) Products With Focus On Service • VTVM Now V-7A Instruments) • 7 Other Meters • General (4 Products) • 5 Generators • Audio (11 Products) • 2 Power Supplies • CRT, Tube, Cap, Vibrator Testers

17 Heath History Full Product Lineup 1956 • Ham (9 Products) • Broadcast Receiver • Test & Measurement (42 • Radiation Counter Products With Focus On Service • Crystal Receiver Instruments) • Enlarger Timer • General (4 Products) • Audio (11 Products)

18 Heath History Full Product Lineup 1956 • Ham (9 Products) • Preamplifier • Test & Measurement (42 • AM And FM Tuners Products With Focus On Service • 5 Amplifiers ($18.65 To $69.50) Instruments) • 2 Speakers • General (4 Products) • Electronic Cross-Over • Audio (11 Products)

19 Heath History Full 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 History The 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 History 1960s—Years of Growth

• 1961 Catalog—100 Pages • 180 Products • 29+ Ham Products • 36+ Instruments • 50+ Audio • Marine • Educational • Automotive • CB 22 Heath History 1961 Ham Top End • Mohawk Receiver $299.95 CW-AM-SSB • Apache $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 History Mobiles

• 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

24 Heath History 1961 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 History From 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 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 History From 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 History The 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 Collins S-Line Look-A-Like?? • Accessories Followed

28 Heath History The SB Line Amps

• 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

29 Heath History The 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 History 1963--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 History 1960s 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 History Non-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 History What 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 History The 1970s Diversification & Winds Of Change

• Instruments • • Audio • TV • Weather Instruments • Clocks • Educational Products • General

35 Heath History Ham 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 History Field Day Early 1970s • Heath Amateur Radio Club –40+ Members • Over 25% Of Heath’s 1,500 Employees Hams • Heath Issued QSL Card

37 Heath History The 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 History 2nd 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 History Solid 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 History The BIG Change

• Altair 8800 Jan ’75 • Heathkit 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 Magazine 41 Heath History Zenith Purchase

• October 1979 • Big Focus—Acquire A 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 • ZDS >$225 Million By 1983 • Separate Corporation To Run 55 Heath Stores

42 Heath History Ham 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 History Ham 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 History Ham 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 History ZDS 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 History The 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 Factors Early 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 Factors The 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 Factors Product 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 Factors Design Engineering

• Engineering Group Each Major Technology • 10 – 15 Engineers/Technicians & Chief Engineer Each Group • Audio • Amateur Radio • Education • General • Instruments • TV

52 Heath Success Factors Manual Department • Same Size As Design Engineering • Manual & Engineering Hours Equal • Half Manual Writers Half Illustrators • Illustrations Better Than Photos

Illustration With Deliberate Distortion 53 Heath Success Factors Component 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 • Heath Paint Shop—Electrostatic Spray • Vertical Manufacturing

54 Heath Success Factors Product 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 Factors Product 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 Factors Product 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 Errors 58 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 SqFt K-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 Websites 61 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