Business Spotlight: Southwest Industrial expands into niche market

Southwest

Industrial Supply

Year founded: 1987

Owner's name: Southwest Industrial Supply Inc.

Address and phone number: 2159 E. Chestnut Expwy., Springfield, Mo. 65802; 862-4225.

Owners of the supply company are working to make two additional businesses successful

Lowell Fay and Charles Downen opened Southwest Industrial Supply, which sells rust-free metal fasteners, pop rivets, adhesives and related items to manufacturers, back in 1987.

In the beginning, the business was a two-man operation.

Fay drove the delivery truck and was in charge of customer service. Downen answered the phone and kept the company's books.

From the outside, Southwest Industrial Supply still looks like a simple operation. However, there's a lot more to this business than meets the eye.

Three companies Southwest Industrial Supply, S.I.S. Paint Inc. and HTD Battery operate out of Southwest Industrial Supply's building on East Chestnut Expressway, and Fay and Downen now employ 10 full-time workers for the three companies.

In 1998, Fay and Downen expanded into the utility-line locating and the construction market when they started S.I.S. Paint Inc. S.I.S. Paint sells paint, flags and other marking supplies to companies that locate underground utilities on construction sites.

A strong construction market helped make S.I.S. Paint's first year of business a success, Fay said.

Because of that success, Fay and Downen decided to begin stocking other supplies used by utility line locating companies.

In 1999, they bought out HTD Battery, which stocks a wide range of dry cell batteries, including those used by utility survey companies.

"A lot of our S.I.S. Paint customers would ask where they could buy the batteries they needed to operate their equipment," Fay said.

"Buying HTD Battery enabled us to become a one-stop shop for utility-locating companies," he added.

Fay and Downen also have been expanding their core business, Southwest Industrial Supply, over the past two years.

Most of Southwest Industrial Supply's customers, ranging from boat manufacturers to commercial transportation companies, are located within a 150-mile radius of Springfield.

In the last part of 1999, Fay and Downen decided to try to expand their sales region to include manufacturers in nearby states, and an additional salesperson was hired. Southwest Industrial Supply's product line also was expanded and now includes more than 3,500 items.

"A lot of people thought we were nuts to expand into so many different directions at once," Fay said.

"It hasn't been easy. Most of our profit has gone into the expansion, but you have to be willing to take some risks so you can grow," he added.

Fay and Downen said they have two more Southwest Industrial Supply branches on the drawing board, and they may add as many as eight to 10 additional employees in the future.

In the meantime, Fay and Downen are spending more time getting their two new businesses S.I.S. Paint and HTD Battery on solid ground.

The two are now working on putting together a 120-page catalog for HTD Battery, which will showcase the wide variety of dry cell batteries and accessories that are available.

"I'm very optimistic about HTD Battery's future," Fay said. "LED energy-saving technology is growing in popularity and is used in everything from exit lights to traffic signals. That, along with other new battery technologies, will provide us with significant opportunities for growth in the coming years."