The Beginning of the End
The success of the computer line attracted the attention of Zenith Corp., which went on to buy Heathkit in 1979 from the owner Schlumberger, an oil field service company that also owned Fairchild Semiconductor at the time. Zenith carved out the computer product line and started Zenith Data Systems (ZDS), and that company went on to build a several billion dollar business making Zenith computers and PC compatibles. Groupe Bull of France eventually bought that business, and ultimately it succumbed to the market forces driving the PC-compatible business with all its shakeouts, ups, and downs during the late 1980s and early 1990s.
In the meantime, the kit business suffered. Zenith didn’t really want that business, but it came with the deal. It was neglected as ZDS grew, and so began its slow decline into oblivion. But a great deal of that decline had little to do with Zenith. It was also the time of great progress in semiconductor manufacturing. More and more equipment was being made of more and smaller ICs and surface-mount components, both of which were always a challenge for kit builders. It became harder to make a kit people could build at home with basic hand tools.
At the same time, wired products became cheaper thanks to Asian engineering and manufacturing. You could buy a great stereo or color TV set for less than what a kit cost, and you didn’t have to spend three weekends building it. Everyone was into instant gratification in the 1980s, so nobody wanted to spend time building kits.
Heathkit discovered it could no longer compete in many markets like ham radio, audio, TV, and test equipment as it took as much time and money to create the manual as it did the product. With double the development costs and the technology making assembly more difficult, Heathkit eventually concluded it could not compete. This perfect storm of conditions led to the formal phasing out of the kit business in 1991 and 1992. There was lots of editorial coverage about that being the end of an era.
But Wait—Heathkit Really Didn’t Go Away
Everyone thought that Heathkit was no more. Wrong! The education and publishing business now called Heathkit Educational Systems (HES) was still doing well. While the courses, materials, and trainers were sold to individuals, HES also developed a huge college and university business. HES was soon sold to a private buyer and continued as a successful operation. It still is today.
While its primary customers are educational institutions, you can still buy individual learning programs and even the trainer kits. HES also retained the rights to all those amazing kit manuals. The company still has many in stock. If you’re looking for the documentation on an older Heathkit transceiver, scope, or whatever, you can get a copy of the manual. It’s a nice little side business.
And despite the surface-mount components, ever smaller ICs, and challenging construction, you can still buy a kit today. Most of these kits are smaller products, but a few larger ones require some skill to build. An example of some of the smaller kits can be found at Ramsey Electronics
(www.ramseykits.com), which offers a wide range of kits like power supplies and amplifiers that hobbyists love. Ramsey also has many ham radio kits and some commercial radio kits.
Jameco (www.jameco.com), which you might recognize as a mail order parts house, also has a line of small kits for hobbyists and educational institutions. Some of the ham radio companies offer kits as well, like Elecraft (www.elecraft.com) and TenTec (www.tentec.com). Other sources include Elenco Electronics (www.elenco.com) and Kelvin Electronics (www.kelviin.com).
Most kits go light on the newer parts and stay with older but still good ICs with the larger through-hole packages. When newer ICs are used, they’re often pre-mounted on a PCB or the assembly using them will be pre-wired to prevent damage from poor construction.
It is still fun and satisfying to build a kit—at least to some people. And if you have the patience, you will actually experience that “Eureka” feeling one gets from building a particularly large and difficult kit. It works! It is a rare, satisfying experience that few enjoy any more. Next time you want to encourage one of your kids or relatives to enter the electronics field, give them a kit.
So despite the fact that almost everyone thought Heathkit died, it still exists and is still doing well. Check out its Web site at www.heathkit.com. The company’s new address is 2024 Hawthorne Avenue, St. Joseph, Mich. 49085. Call 269-925-6000 or 800-253-0570. Many of the original Heathkit employees are still with the company, and that “we won’t let you fail” attitude still prevails.
Acknowledgements
My special thanks to Chas Gilmore (W8IAI) of PPM Inc. as well as Doug Bonham and Randy Kaeding (K8TMK), both of Heathkit, for clarifying some of this information.