I recently visited the facility of a local, independent distributor, Nassco Inc., in New Berlin, Wis., and took a tour with the company’s owner, Gene Melzer.

Melzer showed me how his company had expanded its warehouse to accommodate increased inventory after the acquisition of two companies in the past 3-1/2 years.

He showed me a new room of cubicles currently occupied by only one salesperson, but ready for many more, and an impressive conference room designed for meetings that previously were held in the company’s lunchroom.

The effort, money and time spent integrating Nassco’s acquisitions into the existing company were apparent. But it was work that Melzer said was, “challenging, but worthwhile.”

This month’s cover story, “Is Bigger Better?” triggered memories from that visit. Nassco reacted to industry consolidation by becoming acquisition-savvy, but your company may decide to seek growth in other ways.

Regardless, the fallout from a recent spurt of industry consolidation probably has impacted you somehow. Now’s the time to ask yourself where you’re at, then decide how to react.

I spent days talking to distributors and business experts about the dynamics of consolidation — the challenges and benefits of getting bigger, but still I walked away with the feeling that any independent has the ability to thrive, despite the shrinking pie.




POSTED ON: 7/1/2001