It isn't unusual for High Rock Waterproofing, Inc., to run out of a critical product at the most inopportune time. A Salisbury, N.C.-based waterproofing contractor offering a variety of waterproofing options, including joint caulkings and coatings, High Rock Waterproofing works on tight deadlines, solving water problems for customers that include major universities.

When Jeff Welty, president of High Rock Waterproofing, recently ran out of materials over the weekend, he knew exactly who to call for help: Guaranteed Supply Co., of Greensboro, N.C. He says the distributor is "always willing to deliver" the waterproofing materials, sheet goods, traffic coatings and joint sealants that High Rock needs to keep a job on schedule.

"I've even had guys from Guaranteed Supply deliver the materials to my house over the weekend," says Welty, who has been buying from the distributor for six years. "They're always willing to go out of their way, even if it means delivering after hours."

Guaranteed Supply also brings its technical expertise and problem-solving capabilities to the table for High Rock, which benefits from the distributor's ability to help its customers do their jobs better, faster and for less money.

"They help us with problem-solving, and are just easy to get along with and do business with," says Welty. "They get us what we need, when we need it."

Contractors like High Rock were most likely at the top of Allan Ward's mind when he opened the doors to Guaranteed Supply Co. in 1964. Up until that time, the company was run as Guaranteed Waterproofing and Allan was an employee. When the company went bankrupt in 1964, he found a business partner and parlayed his experience into his own entrepreneurial venture.

"He already was familiar with the products and knew how to source them," says Michael Ward, GSC's regional manager and Allan's grandson. "They [Allan and his partner] saw the need for a good quality supplier, and started their own company."

Over the years, a good mix of family and non-family leadership kept GSC growing in the right direction. About 25 years ago, Allan brought on William Goncharow, current president, to run the company with himself and his son, Kirby Ward, who joined the company in 1967 and now serves as CEO.

When Allan passed away in 1989, Kirby took the reins. It was a passing of the guard that resulted in significant changes for the family-run firm.

"That actually was one of the key turning points in our company's history," says Michael, one of Kirby's sons, and who joined the company in 1993. "When my dad took over, the company tripled in size in five years, thanks to his filling several key management positions, and physical growth into the South Carolina market, where we now have four locations."

Following in Kirby's footsteps were Michael, and his other son, Jason, com-pany branch manager, who came on board in 1997. Working alongside the brothers are non-family executives Wesley Ferree, vice president of operations, and Kent McKinney, CFO.

Over the last three decades, GSC has transformed itself from a single-location distributorship with a handful of employees into a 90-employee company with nine locations.

Its newest location in Asheville, N.C., opened this year. Together, the locations sell concrete accessories, masonry, waterproofing, fire stopping, industrial and caulking supplies, and hand tools to general and sub-contractors throughout North Carolina, South Carolina and southern Virginia.

"When you walk into our showroom, it's basically set up as a hardware store," says Michael, adding that about 65 percent of the company's business is with contractors, 30 percent from sales, and 5 percent from rentals. The company's choice of suppliers also has played a role in its success, he adds.

"We focus on quality, top-name brands and the top-of-the-line products that our customers really want," Michael explains. "We brought on Metabo about two years ago for its quality hand tools and drills. They might be a little more expensive, but we know they're better and we feel better selling them."

In 1998, GSC experienced yet another turning point when it opened a rebar fabrication facility at its 7-acre location in Greensboro, N.C. According to Michael, the company noticed that many of the existing companies weren't servicing concrete contractors in the best possible way. Already working with those types of customers, the crew at GSC decided to fill the void.

"Branching out into that business resulted in significant growth for us," he says. "It's worked out very, very well."

GSC stands out as a business that has made it to the third generation of leadership — no small feat, considering that 70 percent of family businesses never survive the transition from the first generation to the next, and only one in 10 makes it to the third generation, according to the Family Firm Institute, in Boston.

"Our board of directors actually is more non-family than family, which gives everything a very good balance," says Michael. "But when people ask me how long I've been working here, my answer is always, 'all my life.'"

Michael says that the values and work ethic instilled by both his grandfather and father over the last three decades has carried over to all of the company's employees, making GSC a cohesive unit.

"Our company is run like one big family," says Michael. "Our family-run status and longevity in the market demonstrate stability, and customers really like that. It helps us fulfill our corporate vision to be our customers' first choice."

Vendors like it, too. Dan Bueker, territory sales manager for Chemrex, Inc., of Shakopee, Minn., a division of Degussa Construction Chemicals in Cleveland, has been doing business with GSC for 22 years. During that time, he says he's been consistently impressed with the distributor's seasoned management team and ability to operate in fluctuating market conditions.

"They have the experience to adjust in the marketplace," says Bueker, who represents lines such as Sonneborn and MBT Protection and Repair. "A good, seasoned management team makes a big difference, particularly in these times, when the economy is flat."

Steve Rey, territory manager for Corona, Calif.-based Soff-Cut International, ranks GSC as one of his firm's "best distributors" in terms of the volume of products sold, the working relationship between the two firms, and the way GSC represents Soff-Cut's saws, which are used to cut control joints in concrete slabs.

"They represent our products very well, particularly when it comes to sales and marketing," says Rey. "I'm just one person, and I rely on the outside sales folks that they have at each of their nine locations to get the word out about our products. They have a very good rapport with our end user, and have maintained those relationships through even the toughest times."

Like most distributors, GSC hasn't escaped the wrath of a stagnant economy and the manufacturing recession.

"Everyone knows that things are tough right now," says Michael. "Our main strategy is to stay flexible. Our sales reps are flexible and able to sell anything our customers want."

In fact, the company's 90 employees live by the motto: "If you can't find it, call Guaranteed, and we'll find it for you."

"If customers call up and want something that's off-the-wall, we'll get it for them," says Michael. "By offering this kind of service, we know customers will keep calling us. That's one of the primary ways we've managed to keep growing through these tough times."

GSC also hasn't been afraid to expand physically, having recently moved into Asheville, N.C., and moved its Charlotte facility into a more visible location that includes a 2,500-square-foot, modern showroom and a large yard for material storage. The company has cut overhead, watched expenses a bit more closely, and brought on new, profitable lines. Combined, the strategies helped GSC achieve slight sales growth in 2002, says Michael.

"We try to always stay one step ahead of the market with the new products and new locations," says Michael. "Even in a down economy, we're always able to pull through because of our people and because of our vendor relationships," he says. "We're going to continue to make it."