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Facing tough choices

By effectively reacting to market changes, a company can preserve its legacy

By John W. Bragg -- Industrial Distribution, 7/1/2002

Recent changes in our industry have brought to the surface many emotions that take us backward and forward simultaneously. When word was received that Integra had fallen upon hard times, companies like Ross-Willoughby, J. Fegely & Son, Carey Machinery & Supply and the wonderful people associated with them came to mind — industry leaders many of them.

It makes one wonder about the wisdom of decisions often made in reaction to current trends within the industry. In my 36 years in the business, I have watched many trends come and go from my catbird seat, here in the Northeast corner of the country. Through dumb luck or geographic isolation, we have not been coerced, tempted or forced into embracing those trends. Through it all, we have remained independent and relatively small ($16 million in sales), which leaves us in control of our own destiny.

While contemplating past decisions, one can't help but think about the future and what must be done to insure sustained viability.

As we at N. H. Bragg & Sons plan our 150th anniversary, we have looked both backward and forward thinking about what has made it possible for us to have survived for a century and a half and what it will take to continue indefinitely. As the fifth generation to manage the family owned business, the thought of having the company crash on your watch is frightening. Every decision must be made with survival in mind to preserve the legacy for the next generation.

First of all, I am thankful that my ancestors had the wisdom to leave profits in the business to fund future expansion or survive downturns in the economy. Among other things, this has allowed us to establish a presence in Southern Maine, where we were virtually unknown and the competition more intense. Not being highly leveraged allowed us the freedom to experiment with our positioning in this new market.

Secondly, recognizing changes in the marketplace and reacting appropriately to them has kept us relevant to today's world. Take, for example, the horseless carriage. When it was first mass-produced in 1911, we got into the auto parts business.

Now that competition in the auto parts business is more intense, cars are lasting longer and the complexity under the hood is increasing, we decided to sell that part of our business — a difficult decision to make after nine decades of selling auto parts. One third of our total volume was made up of sales through our nine auto parts stores located throughout Maine.

But the change will allow our strong team of experienced employees to focus on our industrial supply business.

Decisions like this must not be driven by emotions. Too many wholesalers have held on tightly to past successes only to watch their companies become irrelevant and die. We must focus on what is and not what was and then react appropriately, but not precipitously.

One hundred fifty years is a long time. Reacting to change is necessary, but overreacting or not reacting can be dangerous for our health.


Author Information
John W. Bragg is president of Bangor, Me.-based N.H. Bragg & Sons. He may be reached at jwbragg@nhbragg.com.

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