TS: So, how long have you been in this business?
Don Shan: After a very successful high school career as a cook at the RED BARN fast food establishment, I landed a job at a fastener distributor, Service Bolt & Nut (SBN), after being referred by a friend. It was 1978, I had lasted two weeks in a community college and really did not have a career path. I was hired at SBN as “helper” in the packaging department mostly making metal edged boxes all day. My first few years at SBN created life long friendships with many friends that remain in the fastener industry today.
TS: So, that was your first job in the fastener industry? Did you do anything other than make metal boxes?
Don: My journey at SBN included learning from the ground up – making packaging, order packaging, Republic Steel key account packing, inventory control, expediting, inside sales, purchasing. Working at SBN was like a college education in the fastener industry
TS: You mentioned there any people you worked with at that first job that are still involved in the fastener industry today.
Don: A lot of people graduated from SBN some of which included…
Kevin Griffin, Ultra Tech Industries and godfather to my son, Adam.
Rick Finau, Lake Erie Cap Screw fame and now a member of Auto Bolt
Mike Maglic, Hercules Fastener. The owners of Hercules were all SBN executives. Jim Collingwood, Tom Weitzel, Mike Maglic, and Rich Tenaglia. All of these men helped shape my career in one way or another. Jim and Tom unfortunately have passed away but their memory is still very much alive.
Rick Bekebrede, Stelfast, Joel Hunger, of NSK fame now at Advanced Resources, James Gale, Branham/Endries, Tim Finau, Hercules , Don O’Connor, past president and one of the founders of the NCFA. John Radel, my future business partner, ran the machine shop. There was a cast of characters who worked in the warehouse and helped create the bond that many SBN alumni cherish.
Dick Walker was at the top of the chain and was truly a character. If you were lucky enough to spend time with Walker it was an experience like no other. He taught me ” sometimes it’s who you know and not so much what you know”. A true lesson in networking before anyone even knew what networking was.
TS: OK, after that first job, what were some other stops on your fastener industry career path?
Don: So, SBN’s demise was linked to Republic Steel, a $1MM dollar account that filed chapter 11, changed their name to LTV Steel and stiffed many small companies. SBN had $750,000 in receivables and only was able to recoup $.10 on the dollar. A crushing amount for a small company to absorb.
So, after 10 years at SBN, I found myself as a free agent and landed at The Fastener House in downtown Cleveland. This stop lasted 6 months when I received a call from Don O’Connor who had landed at Barnes Distribution, which is now part of MSC. I was the SPECIALS guy for sourcing specials worldwide for over 800 independent reps.
The fax machine was just starting to come into use and we took many quotes over the phone. I was driven to team up with Kevin Griffin and we opened Fastener World, a local distributor. This venture had immediate success but was very much undercapitalized. We took on some investors and changed our name to Ultra Tech Industries. Ultra Tech is still in business today and has remained successful.
I was again frustrated with declining margins and felt that the money was in specials so I decided to leave and opened Solution Industries with John Radel. With more guts than vision Solution developed into a story about nothing. We let our customers shape us into special product lines and we offered support with secondary process items. We worked hard to make life easier for the fastener distributor.
TS: So, you seen a lot and been through a lot during all these years. What are some of the biggest changes you have seen in the fastener industry in recent years?
Don: I have seen the evolution of communication throughout my career. I vividly remember the mail arriving at SBN. Quotes, orders all arrived via mail, can you imagine? We communicated off shore via TELEX, kind of like an AP/UPI info line. Phone work was crazy and when you made a sales call the office was buzzing.
The fax machine was an incredible tool for quotes as well as sending out sales propaganda to reach a wide range of customers quickly. A quick to the point blast had an incredible response. Example…”DO YOU USE ZINC PLATED SOCKETS”
We now live in an email world; it makes it hard to get a feel for customer reaction. We should all have to take a course on email etiquette.
TS: Did you attend the Columbus Fastener Show back when it still took place there?
It’s interesting to think back of how that show ran and how it is now today in Las Vegas. Talk about some of the companies that were big players in the industry back then that are no longer part of our industry.
Don: I was a young man when the Columbus show started and our inside staff at SBN all attended, it was our Super Bowl. Anyone who ever attended Columbus knew of the excitement. The vendors had suites on the 8th, 9th &10th floors where you would go from one suite to the next. It was a genius idea as it attracted a consistent flow of opportunity.
There was a 3rd floor bar at the Hyatt where everyone would hang out. I was a young kid but I have never seen anything like the atmosphere it created since then. This is the total difference maker when it comes to today’s Vegas show. Although we have tried to have a social meeting point there are just too many choices and distractions for vendors and customers.
TS: Does the recent rate of change in our industry surprise you? In particular, I think of consolidation in the industry.
Don: In my opinion, consolidation within the industry has taken away the “deal with a handshake” mentality.
TS: Over all those years, has the buying and selling of fasteners really changed that much? What are the biggest changes?
Don: I have never had a true product line to sell, my career consisted in telling a story and creating value for our services. I see the fastener training institute as a great stepping stone to understanding specifications. They do an outstanding job of teaching and they have had a direct impact on QC. I wish I could steal a few hours at the end of their fastener training week to help on educate industry members on sourcing, who does what well, and different skills needed to access the best value. There are a lot of hidden costs in finding true value.
Customer vendor partnerships are the most efficient way to streamline effectiveness.
Every leading distributor who has VMI contacts needs a partner that understands how to become LEAN in servicing their customers. The communication process is the most important ingredient that sometimes gets missed. The lunch and learn is the most effective way to educate customers on the value you bring and how your company can offer a competitive advantage over the competition.
Here is an invitation, schedule a lunch and learn or Teams meeting with me.
I have lived in this distributor support world and truly understand the mine field of supply chain. In todays world of consolidation consider utilizing Fastener Solutions Group as a competitive advantage.
I can be reached at [email protected]
www.fastenersolutionsgroup.com
You can find me at Fastener Fair USA, MWFA Fastener week, and of course in Vegas at the IFE.
NETWORKING is still the key to any industry, just ask my fastener colleagues.