1998's Outstanding Small Distributors

By Staff -- Industrial Distribution, 7/1/1998

2. TECO Pneumatic, Inc.

3. Thomas Hardware

4. L.H. Flaherty, Inc.

5. Pensacola Rubber and Gasket

6. Bay Seal Co.

7. CMI Industries, Inc.

8. Hi-Tech Seals, Inc.

9. Leighton Stone Corp.

10. Fasteners, Inc.

11. S.C. Inc.

12. BSI/King Bearings

13. AFCOM, Inc.

14. Brenner-Fiedler & Associates

15. Lowry Supply, Inc.

16. On-Hand Adhesives, Inc.

17. Texas Process Equipment

18. Technical Equipment Sales Co., Inc.

19. Western States Tool & Supply

20. Impact Distributing of Florida

21. Allen Industrial Supply, Inc.

22. Seal-Pac Professional Services

23. Lake Erie Abrasive

24. Omni Services

25. Numax, Inc.

26. Cail Tool & Machinery, Inc.

27. Toomey Associates

28. Capital Fasteners, Inc.

29. R.J. Vedovell, Inc.

30. Lufasco, Inc.

31. Russack Chemical Specialties, Inc.

32. The B-H Tool & Supply Co.

33. Ledford Machine & Supply

34. Foltz Mfg. & lndustrial Supply

35. Auburn Armature Inc.

36. Cardinal Rubber and Seal, Inc.

37. General Rubber Co.

38. American Hose and Fittings, Inc.

39. The Bolt Supply House Ltd.

40. Central Carolina Supply

41. Puget Safety Equipment

42. Perry Mill Supply

43. Todd Tool & Abrasive Systems

44. The Tool House, Inc.

45. Web Seal, Inc.

46. Abbott Rubber Co., Inc.

47. Abrasive Systems, Inc.

48. Integrated Technologies, Inc.

49. Dudley C. Jackson, Inc.

50. Sprague Fluid Power Technologies

1 Henderson Manufacturing Services, Inc.

Murfreesboro, Tenn.

Christopher Henderson, President

1997 Sales: $2.8 million

Employees: 5

Sales Per Employee: $560,000

Henderson grew its sales by 40 percent ($800,000) thanks to doubling business at its largest account (Federal Express) and taking on non-hazardous solvents and cleaners. Primarily a cutting tool specialist, the company also moved into "general'' industrial segments such as electronics, appliances and automotive, Henderson says. HMS expected to complete an acquisition in Memphis, Tenn. by July and will expand into the Midwest. In contrast to past springs, so far in 1998 "we have not seen a single bit of slowdown,'' he says. "We try to stay within our niche and give personalized service."

2 TECO Pneumatic Inc.

Pleasanton, Calif.

Jon Dickson, President

1997 Sales: $10.9 million

Employees: 18

Sales Per Employee: $608,275

TECO Pneumatic's sales grew by three percent in 1997, but in early '98 the pneumatic fluid power distributor suffered with the slumping semiconductor industry, which is not expected to pick up again until late this year. The company, which does 80 percent of its sales to OEMs in Northern California and Nevada, also has customers in the medical, dairy and packaging industries. "We're in a mini-recession here because of the semiconductor'' industry, Dickson says. "Flat sales for '98 will be the best we do...We're tiered to the OEMs. If they go down, we go down with them."

3 Thomas Hardware

Reading, Pa.

Bob Ruhe, President; Brad Scribner, CEO

1997 Sales: $9.6 million

Employees: 35

Sales Per Employee: $274,285

Thomas Hardware enjoyed 20 percent growth in 1997 which Ruhe says was spread evenly among its three main customer bases -- metal fabricating, fire rescue equipment manufacturers and truck body dealers/transportation. Metal fabrication sales hold the most promise ahead, while competition heated up in the fire rescue segment, he says. Thomas has locations in Reading, Pa., Atlanta, and Visalia, Calif. "We expect this to be a good year but a year when we're really going to have to be on our toes,'' he says. "Certainly the scrapping for every order is going to increase.''

4 L.H. Flaherty, Inc.

Grand Rapids, Mich.

Larry Flaherty, President

1997 Sales: $5.5 million

Employees: 11

Sales Per Employee: $500,000

L.H. Flaherty enjoyed 18 percent revenue growth in 1997, fueled mainly by sales of mechanical products to automotive suppliers and conveying equipment manufacturers. The 52-year-old firm supplies motors, gear boxes, inverters, air and electric brakes and other products. Office manager Tom Hamilton says growth reflects the economy's strength and the company's targeting of specific customer segments. "In '98 we're basically staying with the same targets as last year,'' he says. "Some of our lines are going better than last year, some about the same.''

5 Pensacola Rubber and Gasket

Pensacola, Fla.

Robert Bernhardt, President

1997 Sales: $1.7 million

Employees: 12

Sales per employee: $141,666

Sales grew by seven percent last year at Pensacola Rubber and Gasket, which sells hydraulic, industrial hose and gasket components in the Florida panhandle and southern Alabama. Outside sales manager David Williams says demand from paper mills, chemical companies, waste management companies and heavy equipment dealers and owners was strong. As the economy continues to sizzle, the family-owned firm remains confident it will reach a 20 percent sales growth goal. PR&G also doubled its warehouse in June and will update its computer system and offices this year.

6 Bay Seal Co.

Hayward, Calif.

Randy Smith, CEO

1997 Sales: $9.5 million

Employees: 22

Sales Per Employee: $431,818

Sales decreased 10 percent in 1997 for Bay Seal Co. because of the "ebbing" semi-conductor industry, the main customer for this 26-year-old seal distributor, Smith says. This year the company is actively pursuing other market niches, which he hopes will counter the extremes of Silicon Valley. "I think the Asian flu has had some longer lasting effects than most people anticipated," he says. "Our goal in six months to a year is to grow our business not necessarily in other regions but other industries. Our biggest objective is to continue to work with our existing customer base to gain more market share...and take on other products."

7 CMI Industries, Inc.

Twinsburg, Ohio

Craig Skorepa, President; Meg Skorepa, Treasurer

1997 Sales: $2.2 million

Employees: 11

Sales Per Employee: $200,000

CMI Industries reached 15 percent growth in 1997, keyed by landing new customers who want their inventories managed. The company sells fasteners and electronic hardware largely to high-tech OEMs that make satellite, computer and medical instrumentation equipment. "It really was phenomenal,'' says co-owner and treasurer Meg Skorepa. "This year we're working on our margins; last year we looked at more volume growth.'' CMI continuously updates its technology and acts as a solution provider for end users seeking to reduce vendors or get just-in-time inventory.

8 Hi-Tech Seals Inc.

Edmonton, Alberta

Jim Bond, President

1997 Sales: $2.5 million (U.S.)

Employees: 22

Sales Per Employee: $113,636

Hi-Tech's sales grew by 14 percent in 1997 as the Canadian economy churned along. A drop in oil prices early in 1998 has not hurt sales significantly, with the natural gas sector in particular holding out well. "The business climate up to the end of December was very strong,'' Bond says, adding that planned plant expansions bode well for the future. In February, Hi-Tech Seals moved into a new warehouse and office. The Calgary branch is also relocating to a bigger facility and both branches will be ISO 9000 certified. Hi-Tech Seals also expects to enter the export market.

9 Leighton Stone Corp.

San Francisco, Calif.

Sieg Cabral, President

1997 Sales: $3.8 million

Employees: 12

Sales Per Employee: $316,666

Leighton Stone Corp. enjoyed its best year yet in 1997 with sales revenue up three percent, primarily due to the construction of a large pharmaceutical manufacturing plant in the area. The firm supplies specialty instruments such as pressure gauges, temperature sensors and valves to a variety of industries and wineries in Northern California. LS continues to expand its product line and pending projects such as a computer plant look promising, but sales slumped 15 percent through May. Sales manager Greg Van Dalen says the Asian economic crisis hurt exporters and shipping customers.

10 Fasteners Inc.

Newington, Conn.

Ed Otto, President

1997 Sales: $4 million

Employees: 13

Sales Per Employee: $307,692

Business remained steady in 1997 for this 36-year-old fastener specialty house. The company's forte is applications engineering and design for customers who are located mostly throughout New England and comprise various industries -- from manufacturers of oil drilling equipment to office furniture and electronics. "We're kind of a specialty within a specialty,'' Otto says. "We go after technical products, not standard off-the-shelves.'' FI expects to stick with its strategy in 1998, which Otto says began strong. "We don't seem to have the highs and the lows,'' he says.

11 S.C. Inc.

Fresno, Calif.

J. Ronald Johnson, President

1997 Sales: $1.7 million (estimated)

Employees: 13

Sales Per Employee: About $130,769

Formed 38 years ago, Steam Cleaner Inc. sells industrial cleaning and water treating equipment, cleaning chemicals and accessories throughout California's San Joaquin Valley. The combined health of agricultural customers along with industrial, military and public water treatment projects helped the family-run business. "It was a good growth year for us primarily due to sales of water systems,'' Johnson says. New customers may include some Pacific Rim countries and high tech companies moving to the northern end of the valley. S.C. is also looking to buy a new warehouse.

12 BSI/King Bearings, Inc.

Louisville, Ky.

David Baughman, President

1997 Sales: $4.2 million

Employees: 13

Sales Per Employee: $323,076

Two years after merging, BSI/King Bearings enjoyed double-digit growth in 1997. Vice president Jason Baughman says that was keyed by outside sales specialists who provide design and engineering of mechanical seals and bearings applications for customers in industries like chemical processing, pulp and paper and power generation. The company also makes and distributes inner race bearings for printing cylinder manufacturers. Baughman expects to hire another specialist by the end of the year, which got off to "an outstanding start.''

13 AFCOM, Inc.

Sanford, Fla.

Dermott Rogers, President

1997 Sales: $6 million

Employees: 40

Sales Per Employee: $150,000

AFCOM, Inc. had an "outstanding'' year with nearly 15 percent growth, led by sales of electronic instruments to medical equipment manufacturers and the aircraft and telecommunications industries. The firm provides histograms on all its products, which document test and inspection reports. "Our whole growth is based on customers that have a need for documented hardware,'' Rogers says. "If he's building an instrument for the cockpit of a plane or a heart monitor, he wants to know that the specs being designed are in the hardware...We really think we have a handle on the business we want and where we're going in the future."

14 Brenner-Fiedler & Associates

Cerritos, Calif.

James Kloman, President; Robert Schnieders, Vice President

1997 Sales: $8.1 million

Employees: 23

Sales Per Employee: $352,173

After a slow start, sales "caught fire'' in the last four months of 1997, and revenue rose three percent for the year. The pneumatic distributor focuses on selling small components such as valves and fittings to OEMs in Southern California and Arizona. Sales lagged in part because of a debate over testing standards for auto emissions and smog control in California, which delayed testing equipment orders. Medical equipment orders may help B-F surpass five percent growth this year. Schnieders says the business climate is healthy but sees no "shining stars.''

15 Lowry Supply Co.

Salem, Ohio

Gary Sobotka, President

1997 Sales: $6.15 million

Employees: 22

Sales Per Employee: $279,772

Lowry Supply has been in business since 1953, concentrating on the Northeast Ohio and Western Pennsylvania markets. Major product lines include fasteners, cutting tools and abrasives. Sales were up eight percent last year, and vice president of operations Dennis Donner predicts an even bigger jump this year of almost 12 percent, to $6.87 million. "This is turning out to be a very good year," says Donner. "The economy is still strong; we haven't seen a slowdown yet." Lowry Supply's key services include EDI, just-in-time delivery, bar coding, inventory management programs and 24-hour emergency service.

16 On-Hand Adhesives, Inc.

Mt. Prospect, Ill.

Michael C. Cooper, President

1997 Sales: $4 million

Employees: 13

Sales Per Employee: $307,692

This specialty adhesives distributor sells primarily to the marine recreation and transportation industries throughout the Midwest. 1997 was a good year for On-Hand Adhesives as previously initiated programs began to bear fruit. One of those programs is activity-based costing, which Cooper implemented three years ago. "We got tired of running around expending all our energy on customers who bought about $100 worth of product a year," explains Cooper, who is now concentrating on serving larger accounts better. "1997 was our most profitable year by far." 1998 is shaping up nicely, as well.

17 Texas Process Equipment

Houston, Tex.

Don Grogg, President

1997 Sales: $14 million

Employees: 56

Sales Per Employee: $250,000

"We're trained toward customer service," says Grogg. "We know who pays our bills around here." This specialty house has focused on the customer since opening its doors in 1971. Originally a pump service center, Texas Process Equipment became a distributor of those products in 1972. Late last year, Grogg began conducting monthly customer satisfaction surveys that have yielded interesting results. "They tell us we're not telling our customers enough about our products," he says. To remedy that, the company put together a new catalog and launched a customer newsletter this year.

18 Technical Equipment Sales

Charlotte, N.C.

James E. Udick

1997 Sales: $1.4 million

Employees: 4

Sales Per Employee: $350,000

Coming off a spectacular 1997, Udick expects sales to dip slightly in '98. "Business is not as hot as it was," he says, "but we're looking for a good year. We're going to hang in there and keep moving." One of the things that keeps the company going is its commitment to customer service. Technical Equipment Sales prides itself on having what the customer needs when he needs it. That philosophy gives the company a competitive edge. "There's still a need for people like us who specialize," Udick says, "because there's no way those big companies can have everything in stock."

19 Western States Tool & Supply Corp.

Hayward, Calif.

Ralph Rader, President; Alan Talbot, Vice President

Employees: 14

1997 Sales: $4,925,000

Sales Per Employee: $351,785

A one-percent sales gain in 1997 is not truly indicative of Western States Tool & Supply's success supplying and serving mechanical contractors primarily on the West Coast. The distributorship attracts repeat customers with rapid and flexible service that includes free weekend deliveries. "It's overall service we sell rather than products,'' Rader says. With plenty of industrial and commercial construction projects in the region, Western States' prospects are strong for the rest of 1998. The firm focuses on mechanical contractors.

20 Impact Distributing of Florida

Tampa, Fla.

John Diaz, President

1997 Sales: $3.2 million

Employees: 9

Sales Per Employee: $355,555

Value-added services are what sets this company apart. Impact Distributing of Florida was managing inventory for key customers before it was a hot concept, Diaz says. "We have a reputation in the Florida market for being a distributor that offers a lot more value than just delivering or warehousing product," says Diaz, adding that Kanban systems and weekly inventory responsibilities are among his firm's claims to fame. That's not bad for a small distributor specializing in adhesives, abrasives and safety products. Diaz hopes to hit $4 million in sales this year.

21 Allen Industrial Supply, Inc.

Burbank, Calif.

L.D. Halpert, President

1997 sales: $1.2 million

Employees: 10

Sales Per Employee: $120,000

This general-line distributor deals primarily in the greater Los Angeles area, but sells nationally and internationally as well. The entertainment industry is a big part of Allen Industrial's customer base -- the company supplies movie studios directly as well as indirectly through machine and fabrication shops that support them. Halpert says he and his employees have the inside scoop on the movies. "We know which ones to see and which not to see," he says. The company's backbone is its service -- extensive product knowledge, good inventory levels, and quick delivery ensure customer satisfaction.

22 Seal-Pac Professional Services

Baytown, Tex.

Steve Daniele, President

1997 Sales: $2 million

Employees: 9

Sales Per Employee: $222,222

This fluid sealing product specialist makes its second appearance in ID's list of outstanding small distributors. Staying on top of the competitive Gulf Coast market remains a challenge, says Daniele. But with all the consolidation going on, he says remaining a specialist is the key to success. Seal-Pac has its own shop for fabricating gaskets, as well as a mechanical seal re-conditioning shop. "We're a one-stop shop for fluid sealing products," Daniele says. "We have the specialized services customers want." A comprehensive training program helps keep the company on its toes.

23 Lake Erie Abrasive

Cleveland, Ohio

Allen Howell, President

1997 Sales: $7.1 million

Employees: 10

Sales Per Employee: $710,000

How can a 10-employee company yield $7 million in sales? In a word, technology. In the last five years Lake Erie Abrasive has invested over $100,000 in computer and logistics systems. From printers to PCs to wireless communication to bar coding -- you name it, this firm has it. "We spend an overwhelming amount on technology, but it goes right to the bottom line," explains Howell. It also helped the specialty abrasives house become a commodity distributor for Ford Motor Co. earlier this year. Howell anticipates more such deals in the future. Lake Erie Abrasive covers the Northeast Ohio market.

24 Omni Services

Worcester, Mass.

Bob Mitchell, CEO; Chuck Connors, President

1997 Sales: $10 million

Employees: 35

Sales Per Employee: $285,714

Mitchell founded this hose and accessories distributorship in 1976. Originally serving the MRO needs of the New England plastics industry, Omni Services has expanded its coverage to include OEM customers in other industries throughout the region. 1997 was a great year, say Mitchell and Connors, and 1998 is shaping up nicely. Earlier this year Omni invested heavily in fabricating services by purchasing mechanized hose cutting equipment. Connors says the new equipment will enable Omni to cut larger volumes of hose to customer specifications -- another addition to Omni's array of value-added services.

25 Numax, Inc.

Tappan, N.Y.

Stephen A. Leber, President

1997 Sales: $8 million

Employees: 38

Sales Per Employee: $210,526

Numax distributes fastening systems, fasteners, adhesives, and packaging systems in New York, New Jersey, and eastern Pennsylvania. In 1997, the company added new lines, moved a branch office to a larger location, and opened a new branch outside of Buffalo, N.Y. Leber plans to address the company's anticipated growth in 1998 by opening two more locations in New York. "We've been trying to take advantage of the mini-boom in the construction industry on the East Coast by placing greater emphasis on our construction customers," Leber says. Numax offers customers better service than they can find at big box retailers, Leber says.

26 Cail Tool & Machinery, Inc.

Columbus, Ga.

Russell S. Cail, President

1997 Sales: $7.3 million

Employees: 10

Sales Per Employee: $730,000

Cail Tool & Machinery will spend 1998 digging in deep to realize the return on recent investments the company has made in employees, computer software, and facilities. "We've invested a lot of money in the business recently," Cail says. "We just doubled our warehouse size from 6,000 to 12,000 square feet, hired two more salespeople, and bought [a new] software package. That enabled us to break our territories down and penetrate them a bit more. What was a one-person territory is now a four-person territory." The company will also continue to work toward forming business partnerships with vendors.

27 Toomey Associates

Westfield, Mass.

William G. Toomey, President

1997 Sales: $3.65 million

Employees: 15

Sales Per Employee: $243,333

Value-added capabilities accounted for sales growth in 1997 for this distributor of high-pressure hydraulics and pressure instrumentation. "We're looking to continue to grow in the specialty areas by offering a complete systems approach and continuing to offer the turn-key applications which reduce the customer's cost to purchase the product," says Mike Hatch, vice president of sales. "We also anticipate more competition from catalog houses that sell primarily on price rather than expertise. The best way for us to compete is to unbundle our services and to maximize the expertise that we have gained through the years."

28 Capital Fasteners, Inc.

High Point, N.C.

Robbie Gilchrist, President

1997 Sales: $8.5 million

Employees: 60

Sales Per Employee: $141,667

Capital Fasteners is aggressively working toward its goal of increasing sales by $1.5 million in 1998. The company will do that by adding more managed inventory customers to its client base. "We can go in and set up an inventory-managed program fairly quickly and that's one of our major selling points," Gilchrist says. "The programs we put together for our customers are not cookie-cutters. We make our service fit their requirements. We go in and inventory on a prescribed basis -- we even throw away the trash. Our dedication to service sets us a little bit apart."

29 R.J. Vedovell

Holland, Mich.

David W. Hoffman, Jr., President

1997 Sales: $2.9 million

Employees: 11

Sales Per Employee: $263,636

This 30-year-old company specializes in o-rings, gaskets and seals. A significant commitment to its Web site over the last few years has yielded positive results, according to Hoffman. Potential customers from across the country and around the world call Vedovell weekly asking for more information on the company's products and services. "We're small, but almost every other day we hear from engineers praising our Web site," Hoffman says. "We get a lot of inquiries from it. That area's really paid off for us." Hoffman hopes for continued success.

30 Lufasco, Inc.

Exton, Pa.

Fred Lubker, CEO

1997 Sales: $14.5 million

Employees: 52

Sales Per Employee: $278,846

Headquartered in Pennsylvania, this 30-year-old fastener distributorship covers the East Coast with warehouses in South Carolina and Maryland. A big sales increase in 1996 was followed by steady growth last year, and controller Betsy Brown expects another solid year in 1998. The company offers an impressive array of benefits to employees including health/dental insurance, maternity leave, sick time, short- and long-term disability, 401K matching and profit sharing. Customer services include EDI, formal in-house performance monitoring, vendor-managed inventory, 24-hour emergency service, just-in-time delivery and bar coding.

31 Russack Chemical Specialties, Inc.

Columbus, Ohio

David Russack, President

1997 Sales: $400,000

Employees: 3

Sales Per Employee: $133,333

In 1997 Russack, which specializes in molybdenum disulfide dry lubricants and their applications, dropped poorly performing products. "Now we're looking at adding three significant product lines that we think show real promise," Russack says. "The products we're looking at are cutting edge." The company also made improvements to its computer and communication technology, including creating a Web site, which are changing the way the company does business. "We got an inquiry from some people in Korea recently that would not have come to us without our Web site."

32 The B-H Tool & Supply Co.

Sterling Heights, Mich.

Harry J. Okros, President

1997 Sales: $6.8 million

Employees: 9

Sales Per Employee: $755,555

Obtaining ISO 9002 certification was one of 1997's significant achievements for B-H Tool & Supply. "Originally the process was customer driven, but we've reaped several benefits from it internally," says Okros. The certification process helped the specialty house, which focuses on cutting tools, to improve its procedures and documentation. In 1998, Okros expects to see a continuation of the gradual sales increase the company has experienced during the last several years and to continue its focus on providing customers with 24-hour access to the sales staff.

33 Ledford Machine & Supply Inc.

Cleveland, Tenn.

Betty Pritchard, President

1997 Sales: $1.2 million

Employees: 8

Sales Per Employee: $150,000

This regional general-line distributor serves companies including M&M Mars Candy Co., Olin Chemical Co., and Bowater Inc., a paper mill. "We've pretty much held to the things we know we do well over the last couple of years," says Steve Thomas, general manager. "We specialize in customer service and after-hours emergency service. Our customers know that if we don't have something in stock, we'll do everything we can to find it for them -- even if that means getting somebody up out of bed to drive to another town."

34 Foltz Mfg. & Industrial Supply

Hagerstown, Md.

H. Tim Foltz, President

1997 Sales: $1.9 million

Employees: 16

Sales Per Employee: $118,750

1997 brought increased sales growth for this mill supply house. The company also worked to update its product offering by adding more innovative products to its line of pipe, valves and fittings, fasteners and cutting tools. "We're looking forward to more turns in inventory in 1998," Foltz says. "And we're looking to provide faster availability of our products for our customers." Foltz attributes the company's competitive edge to a knowledgeable sales staff. "Our sales staff has more knowledge of our products than some larger houses do and we can react to specialty items quicker."

35 Auburn Armature Inc.

Auburn, N.Y.

Michael Capocefalo, President

1997 Sales: $12 million

Employees: 62

Sales Per Employee: $193,548

This electrical distributor spent 1997 preparing to move into its new 50,000-sq. ft. facility which includes a state-of-the-art training center and a mobile product display that the sales staff uses to give customers on-site demonstrations and training. The company is in the final stages of acquiring an electrical wholesaler, says Capocefalo. "We have a base of customers in the industrial and OEM markets and our mission is to expand our product offering using our existing resources. We want to have more products going out on our trucks to the same customers."

36 Cardinal Rubber & Seal Inc.

Roanoke, Va.

Loren D. Bruffey, Sr., President

1997 Sales: $5 million

Employees: 30

Sales Per Employee: $166,667

Integrated supply is the name of the game for this distributor of hydraulic hose fittings, seals and gaskets. In 1997, the company entered into its third integrated supply contract in four years. "We have two more proposals on the workbench right now for other OEMs," Bruffey says. The company is also planning to add 10,000 square feet to its current facility and is negotiating to acquire a gasket fabrication manufacturer, which will provide "more versatility in-house for a lot of the contract work that we currently sub out," Bruffey says.

37 General Rubber Co.

Milwaukee, Wisc.

Jack Kacsur, President

1997 Sales: $2.4 million

Employees: 13

Sales Per Employee: $184,615

General Rubber is continually working to meet the changing needs of its manufacturing and industrial customers in southeastern Wisconsin. The supplier of more than 8,000 items -- including hose, hose fittings, pneumatic tools, mechanical products, and tool accessories -- has expanded its specialty service to respond to customer orders for hose assemblies, cut-to-length hose, rubber strips and die cut rubber. The company recently added on-site tool repair to its list of services offered. The company is currently in the process of seeking ISO 9002 accreditation.

38 American Hose and Fittings, Inc.

Kent, Wash.

Greg Bowman, President

1997 Sales: $6.6 million

Employees: 24

Sales Per Employee: $275,000

American Hose and Fittings added new life to its main facility in 1997: the company added a retail facility where customers can walk in and buy hydraulic and pneumatic hose and fittings. "We see a lot of people in the construction business and a lot of MRO customers who need a fitting or hose for their shop," says Bowman. The company plans to grow in 1998 by placing new emphasis on systems contracts with larger accounts and continuing to offer experienced salespeople, deep inventory, and quality service.

39 The Bolt Supply House Ltd.

Calgary, Alberta, Canada

John J. McCann, President

1997 Sales: $12.7 million

Employees: 55

Sales Per Employee: $230,909

The Bolt Supply House is in the process of opening a series of franchise operations in Eastern Canada. "We are adding another branch in July and we'll have two more branches by the year's end -- and those will be franchised operations," says McCann. He expects that franchising will grow the company at the rapid pace necessary to become a significant player in the new markets. The company continues to focus on educating its employees, all of whom have been to the Texas A&M Advanced Management Course or the University of Industrial Distribution.

40 Central Carolina Supply

Sanford, N.C.

John Dunleavy, President

1997 Sales: $2.3 million

Employees: 9

Sales Per Employee: $255,555

This general mill supplies distributor gave its showroom and counter area a $30,000 facelift in 1997. "We were trying to give ourselves a cleaner image and expand our point-of-purchase displays," says Dunleavy. "The reaction has been great. It looks totally different." Walk-in customers, who account for 20 percent of the business, include representatives from plants, factories, and contractors. The regional distributor is planning to expand the business into new territories in 1998 and has recently hired a new salesperson to begin that process. This established distributor sees expanding into new territories as the best way to grow.

41 Puget Safety Equipment Co.

Bellingham, Wash.

Becky Eastwood, President

1997 Sales: $1 million

Employees: 6

Sales Per Employee: $166,667

Puget Safety is expecting to grow its business by picking up big business castoffs. "With all the consolidation going on in our industry, we get more opportunities," Eastwood says. "The large distributors aren't interested in the small to medium-sized firms that we serve, so we're picking up that business. The end users of our products are relying more heavily on folks like us because we offer service and training with what we sell. Plus, when they call Puget Safety they get a real person." Puget Safety is adding sales people to handle the current growth.

42 Perry Mill Supply

Erie, Pa.

Donald McCain Jr., President

1997 Sales: $6.25 million

Employees: 27

Sales Per Employee: $231,481

Business in 1997 was good for this general-line house. "One of the things that's good about Perry Mill is that its customer base is diversified," McCain says. "We have municipalities, institutions, industrial, and contractor customers. Generally if one segment is down, the others pick up the slack." The company's latest effort to grow the business has been to produce a catalog. "We're just getting it to customers now," McCain says. "So far the response has been positive. We're hoping to see an increase in business because of it." The catalog is intended to generate additional business with new and existing accounts.

43 Todd Tool & Abrasive Systems

Danvers, Mass.

Michael Todd Smith, President

1997 Sales: $5.2 million

Employees: 9

Sales Per Employee: $577,778

Traditionally known as an abrasives house, this distributor has doubled sales since 1996 by adding new product lines. Cutting tools now account for 50 percent of revenues. "The best way for us to grow profitably is to sell additional products to our existing customers," Smith says. "We cater to the job-shop industry and we pride ourselves on having enough stock on-hand to keep the machines going." Smith expects to achieve 20 percent growth in 1998 by expanding product lines and solidifying customer relationships.

44 The Tool House Inc.

Lincoln, Neb.

Paul Ahrendt and Jim Glenn, Owners

1997 Sales: $6.6 million

Employees: 36

Sales Per Employee: $183,333

Ahrendt credits a strong economy for part of the continued growth that is expected for 1998. "The market is strong and it looks like it's going to stay strong for the upcoming year," he says. To keep up with the growth, The Tool House is constantly experimenting with technology. Currently, the company is building a test network for sales automation. "We're hoping to put together a strong sales automation system that will track calls, sales productivity, etc. We're also looking at replacing our business software and experimenting with outbound phone sales."

45 Web Seal, Inc.

Rochester, N.Y.

Donald L. Hurley, President

1997 sales: $4.37 million

Employees: 35

Sales Per Employee: $124,857

Web Seal specializes in seals and gaskets and has customers like Kodak, Xerox and Ingersoll-Rand on its roster. "We view ourselves as an extension of their materials management department," says vice president John Hurley. What stands out is its receivables average of 31 days. "We have negotiated with customers some deals in terms of trade-outs in return for quicker payment, and we'll do stocking arrangements, but [customers] need to pay us in 15 days." It helps that many customers pay by credit card. Web Seal manages its inventory tight; its value has dropped from over $600,000 to just over $300,000 while maintaining service levels.

46 Abbott Rubber Co. Inc.

Elk Grove Village, Ill.

Terry Weiner, President

1997 sales: $7.5 million

Employees: 35

Sales Per Employee: $214,285

Weiner says 1998 started off "with a bang." He expects 20 percent growth, or sales of $9.5 million in 1998. The firm has acquired three companies in the last three years, and is considering another buyout this year. "We've absorbed some competitors and that's given us some growth, but we've also got into some new markets," he says. Hose and accessories represent 90 percent of revenues, and Abbott Rubber's in-depth inventory is its biggest asset. Sales to other distributors make up 50 percent of revenues. Other customers include OEMs, construction and the agricultural industry.

47 Abrasive Systems, Inc.

Maple Grove, Minn.

Chuck Mattson, President

1997 sales: $11.5 million

Employees: 23

Sales Per Employee: $500,000

This abrasives and adhesives specialist expects 20 percent growth in 1998, and has made its mark selling to customers on a consignment basis. Just over one-quarter of its revenues come from consignment sales. "It's been a real growth area for us. We started four years ago with six accounts, and we're up to 100 now," says Mattson. The system eliminates most overhead and transaction costs for the customer. Abrasive Systems also sells sand-blasting equipment, air tools and assembly tools and safety products. Customers include the woodworking industry, fiber optics, and medical. The firm also has a full service department.

48 Integrated Technologies, Inc.

Mentor, Ohio

Alan J. Moorman, President

1997 sales: $1.75 million

Employees: 6

Sales Per Employee: $291,666

Offering customer solutions is the expertise of Integrated Technologies, a fluid power house founded in 1986. Gross margins consistently average in the 33 percent range. "The people we hire have a lot of experience in fluid power and hydraulics, and come up with solutions that make sense," says Moorman. "If we respond quickly, business follows." Customers include OEMs like Caterpiller and John Deere, dealers of bobcat equipment, and other distributors. A couple of pending deals could push 1998 sales well over $2 million.

49 Dudley C. Jackson, Inc.

Helena, Ala.

Ken Jackson, President

1997 sales: $7.5 million

Employees: 26

Sales Per Employee: $291,128

How does Jackson manage to spend just two hours a week at the office? His employees are empowered to make their own decisions. Those decisions ultimately affect profitability, which is shared among them. For the last four years, the company's matching 401K program donated $1.50 for every $1 contributed by employees, up to five percent. The firm has experienced no turnover since 1992. Jackson spends most of his time working on charities and at speaking events. "More than anything, having zero turnover impresses people the most," he says. Jackson was recently named the recipient of a Sam Walton Business Leader Award.

50 Sprague Fluid Power Technologies

Hingham, Mass.

Paul S. Gunn, President

1997 Sales: $11.7 million

Employees: 40

Sales Per Employee: $292,500

Sprague specializes in automation components and solutions, selling everything from pneumatic valves and cylinders to electronic actuators and fluid connectors. With the decline of manufacturing in New England, Sprague has had to find new ways to go to market. One way was by opening two Parker-Hannifin franchises. Known as the Parker-store concept, they act as one-stop shops for replacement hose and connector business. A strategic alliance with another Massachusetts company in May will boost services to OEM customers.Industrial Distribution relies on self-reported data in compiling the list of the 50 Outstanding Small Distributors. Self-reporting is often the only way to obtain information from the privately held small firms on the list. As always, we are constantly evaluating new ways to update this survey. If you have any comments or suggestions, please contact Associate Editor Victoria Fraza at (617) 558-4791. And watch for in-depth reports on some of the top 50 firms, as we will feature selected companies in upcoming issues over the next year.