As I was doing the research and interviews with Industrial Supply Company, and writing this profile, one famous quote kept popping in my head….
“Go West, young man, go West and grow up with the country.” Horace Greeley.
That “grow up with the country” phrase certainly applies to Industrial Supply Company. They are a great example of a Company founded in 1916 in Salt Lake City, Utah (originally as Mountain States Rubber Co.) that has “grown up” side-by-side with their customers. They have expanded their territory, changed their business focus, and adjusted their service model as their local market and end customers have changed for over 100 years.
Now with 8 locations across Wyoming, Utah, Nevada, and Arizona, this 4th-generation family-owned business has evolved with the markets and end customers they serve. Today Industrial Supply Company (ISC) serves this western territory with Safety Solutions, Metal Working, and Integrated Supply programs. I can share from experience working for a distributor that has locations in the ISC markets, that they are all unique. For example: The ISC loaction in Elko, Nevada may be in same state as Las Vegas, but it is on the other side of the moon in terms of customers and market needs. ISC likely does business and offers services in each different market to meet their local end customers’ needs
So, let’s start with a quote and a little bit of history on Industrial Supply Company.
“If you don’t anticipate the future, you won’t have any future”
Quote from Philip Thompson III – Industrial Supply Company Chairman of the Board. I like that quote as it embodies their organizational philosophy and this mantra is a key foundation to their success.
Industrial Supply Company started in 1916 with the founding of the Mountain States Rubber Company that provided the mining industry with much-needed products such as packing, industrial tires, and conveyor belts.
“Ten years later, amidst a booming Utah economy, the founder Rudolph Orlob started Industrial Supply to better serve a wide range of emerging industries. By the 1950’s, the customer base expanded significantly to include steel making, steel fabrication shops and foundries, as well as public utilities, mining, manufacturing, and construction segments.
In 1982, Industrial Supply adapted to the new business climate, shifting its focus to Utah’s emerging aerospace, defense, and construction businesses. By evolving to change with the market, the business continued to grow during a time of downsizing, outsourcing, and modernizing.”
That history of moving with the customer, to me, speaks to the company’s focus on anticipating the future.
“Today, Mr. Orlob’s family still owns and manages Industrial Supply, and is continually adapting the company to meet our customers’ needs. We currently offer over 200,000 products to the construction, aerospace and defense, utilities, government, electronic, mining, and manufacturing industries; and we’re proud to be affiliated with leading industrial vendors such as 3M, Kimberly Clark, and Dewalt, companies that have been in business for decades and can bring literally a lifetime of knowledge and product experience to our customers.” I thought this quote on Industrial Supply Company website showed that commitment to adapting to meet their customers’ needs and anticipating the future.
Focusing on the End Customer worked in 1916 and still works today…with some adjustments for Modern Times
As we do for all our profiles of ISA members we ask a few questions that Jessica Yurgaitis, CEO of Industrial Supply Company provided some great succint answers to below.
Q. What one question would you like every manufacturer to answer for you? I love to ask the question, “how can we be a better partner to you?” It’s important to find alignment in goals with our manufacture partners and listening and learning helps that process.
Q. What do you see as the greatest opportunity, and the greatest challenge, to the industry? Why? AI is the greatest opportunity and also the greatest challenge.
Q.Thinking about your manufacturer / distributor relationships, how have they changed over the past 5 years? What do you see key to these relationships in the next couple of years? They are becoming more and more important to differentiate from the “me too”
What jumps off the page in those answers is Industrial Supply Trends laser focus on relationships with their partner manufacturers and an understanding that those relationships are being affected by AI and the evolving distribution channel. That fundamental focus on the end customer and relationships worked in 1916 and still works today, but the nature of the relationship is changing. Today, that relationship foundation bedrock is still your people, but it has to be backed by services and proper technology solutions to be a complete relationship.
So, What Can you Learn from the Industrial Supply Company Story?
I love that quote from Mr. Thompson “If you don’t anticipate the future, you won’t have any future”. The ISC team is clearly integrated with their end customers (Integrated Supply, Safety, and Metalworking) and getting direct feedback on a daily basis. One of the overlooked aspects of Integrated Supply is your team is very close to the customer (they are actually on the premises working with the customer). That being there “integration” with the customer is invaluable as when their needs change you are likely the first person to know.
What has changed is that just being “integrated” with the customer may not be enough long term. The technology needs of the customer are becoming as important and sometimes the most important part of their decision-making process. Jessica’s quote, “AI is the greatest opportunity and also the greatest challenge.” is telling.
That foundation of “techno-relationships” is getting more intertwined each and every day. The key part I would encourage you to consider is the best way to understand the right “techno-relationship” for your industrial channel business is to have regular and consistent 360 degree surveys with your channel partners: Distributor – Manufacturer Rep – Manufacturer – End Customer. Whatever part of the Distributor – Manufacturer Rep – Manufacturer channel you are having organized and consistent surveys and research going on is crucial to success. At CMG we work with all three parts of the channel on these 360 degree surveys, and each and every time we present the results I hear…I did not know that, whoa the customers are saying this is more important than I thought, and more.
If you are just running your business on anecdotal direct feedback alone, I would give you a word of caution.
Face-to-face feedback is crucial, but often the bad news and what the customer truly feels and needs never gets back to leadership because of the friendship factor. If you don’t get that true feedback you need through research and surveys you increase the number of times you get the “I am really sorry and I appreciate our friendship, but we had to go in different direction….”
The Industrial Supply Company has shown they work hard to be in lock step with their customers and channel partners. It’s a great story of a company that has “grown up” with its customers and is willing to change with the times.
As always, we appreciate your comments and support. If you want to talk more about customer research and surveys, or share how you are doing that for your channel business, please feel free to reach to me directly.
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