MINNEAPOLIS – Nortech Systems announced sales of $33.9 million for the second quarter, a decrease of 3.2% from 2023's second quarter.

“We are working closely with our customers to optimize post Covid supply chain strategies which includes continued near-shoring activities and the development of customer specific collaborations to further reduce lead times,” said president and CEO Jay D. Miller. “We believe that these actions will further strengthen our customer relationships which are key to our achieving our long-term strategic objectives.

“We continue to effectively manage operating expenses while focusing on long-term growth,” Miller noted. “During the quarter we have rapidly implemented the announced optimization of our Minnesota facilities by the end of 2024. While having a short-term negative impact on our financials, we anticipate these actions will significantly improve our efficiency and reduce our cost structure by at least $1.6 million in 2025 and beyond and position Nortech for improved top and bottom-line growth.”

For the first half of the year, the company's sales of $68.1 million were down 2.6% from last year's first half.