Latest / Elevate Podcast: Powered by Braden / Elevate Ep 29: Betting It All On Business - Michael Webster, CEO of frēijē Engineered Solutions Co.
Transcript
- 0:10Welcome to the Elevate podcast powered
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- 0:38behind the scenes content. Now, let's
- 0:40dive in. Hey everybody, Jason here with
- 0:44another Elevate podcast powered by
- 0:46Brady. I tell you, these conversations
- 0:48are terrific. We're talking to
- 0:49forprofits and nonprofit business
- 0:52leaders from around the city. Their
- 0:53stories are awesome. This one today, I'm
- 0:55sure, will be no different than the rest
- 0:57we had. And so, Michael, welcome to the
- 1:00show. Maybe just a quick intro for you.
- 1:02Cool. Uh, Mike Webster, CEO of 3G
- 1:06Engineered Solutions, as you see up
- 1:07here. Uh, I live here in Fischers,
- 1:10Indiana. I've been here 30 plus years
- 1:12now. Been a while.
- 1:13>> Awesome. Gotcha. Welcome to the do. So,
- 1:17before we get to where you are as the
- 1:18CEO of 3G, let's go back to the
- 1:20beginning. Where you from originally?
- 1:22So, I grew up in uh KZ, Illinois. Big
- 1:25Brockman metropolis up with a great KZ
- 1:28I've never se 3,000 people. Okay. One
- 1:32stop light. One stop, one flashing red
- 1:34light. So, kind of wanted to have great
- 1:37way to grow up. Honestly, loved it. Uh
- 1:40sports was a big part of my life back
- 1:42then and being in a small school, I
- 1:44didn't have to be a superstar athlete to
- 1:46be a superstar athlete. Sure out. It uh
- 1:49kind of helped from uh that standpoint,
- 1:51but it was the only way to grow up.
- 1:52>> Going to school there. So, high school,
- 1:54how many kids were in your class?
- 1:56>> Uh like 80.
- 1:57>> So, you can do whoever.
- 1:58>> Oh, yeah.
- 1:59>> And or Bob below you.
- 2:02>> Every other parent knew you had and all
- 2:04that kind of stuff. So,
- 2:05>> all right. So, you're playing sports,
- 2:07growing up in a small town, and you
- 2:09finish up, you know, with high school.
- 2:11What What's going to come next? You
- 2:12finish up your four years. Where do you
- 2:14think you're going to go? What are you
- 2:15gonna go do next?
- 2:16>> Yeah. I wanted to keep playing sports,
- 2:18but frankly I wasn't uh you know quite
- 2:21as good as I thought I maybe was. No.
- 2:24And but I ended up playing I went to
- 2:26school called World Solut.
- 2:29>> It was a good academic school and
- 2:32>> I was kind of down jock at that school.
- 2:34So I got in because I like shoot
- 2:36basketball and uh
- 2:38>> played a couple sports there. It was a
- 2:40good once again still a small school.
- 2:42Yeah. So I kind of kept that theme and
- 2:44that it was a it was a college that was
- 2:47suited for me probably because you
- 2:49couldn't switch out of engineering. I
- 2:51mean engineering is challenging. I mean
- 2:52at Rice School is challenging but if I
- 2:55was at Purdue for sure I would have been
- 2:57like flipping into accounting or
- 2:58business or something because that would
- 3:00have been but having to change schools I
- 3:02didn't really want to do that. So I just
- 3:04got it out.
- 3:05>> No kid.
- 3:07>> All right. So, so played basketball, but
- 3:10when you're coming out of high school,
- 3:12engineering was going to be what you
- 3:14wanted to get into. What was the genesis
- 3:16for that? Why go down that track? And I
- 3:18was, my mom was my high school math
- 3:20teacher. So, all the no.
- 3:22>> Yeah. And so, I always had math in my
- 3:25background and it was easier for me than
- 3:27English for sure.
- 3:29>> And so, but it was interesting going to
- 3:32Roseman that u there were a lot of smart
- 3:35guys. And then there's some brilliant
- 3:37guys at Dallas and you know coming out
- 3:39of there after four years you're you're
- 3:41pretty much demoted make the league like
- 3:44but I'm not I'm not the smarts guy there
- 3:47by any means you know. Uh so it was uh
- 3:50it was interesting though getting into
- 3:52the real world not being extraed by
- 3:54brilliant engineers and professors and
- 3:57being like yeah maybe I am bra
- 4:00quite as dumb as I know I was
- 4:03but uh so it was kind of it was a little
- 4:06cocoon you're in. Yeah I sure quite you
- 4:09know kind of assumed everybody was as
- 4:11brilliant as a lot of those uh those
- 4:14guys at Rose Hullman in the you know the
- 4:17real world is more normal. It was pretty
- 4:19full of support for him. All right. So,
- 4:20four years at Rose Hall and you said he
- 4:22mentioned played a couple of sports.
- 4:24>> Nice. I played uh basketball for three
- 4:26years and football.
- 4:28>> I saw one year I played both football
- 4:29and basketball my last couple years. No,
- 4:32>> it was it was a fun it was division
- 4:34three. So, it's not like I mean I gave
- 4:36you money kind of however they do it.
- 4:38They figure out a way you couldn't get a
- 4:40full scholarship but the uh it was good.
- 4:43Kept me busy, kept me, you know,
- 4:45focused. Kept me out of trouble. Yeah.
- 4:47you kind of and that's one of the things
- 4:48I tell my kids, you know, you can you
- 4:51can do, you know, anything you really
- 4:53want to do, but grades have got to be
- 4:55first and then, you know, if you're
- 4:56going to play sports, you probably can't
- 4:57party as much or you probably can't lay
- 4:59around on the couch on Sunday as much,
- 5:01right? And then give up something, you
- 5:03know, and uh you got to pick what you
- 5:05want to do, but make sure you know, make
- 5:07sure you graduate. Uh so that was that
- 5:10kind of forced you into that line of
- 5:12thinking. And sports kind of kept me,
- 5:14you know, away from some of the,
- 5:16>> you know, sharp things.
- 5:19>> But still, it was a fun I mean, I was
- 5:21able to go my freshman year. We went
- 5:23over to Russia and it was when the
- 5:25Soviet Union.
- 5:26>> Yeah. Just as I was going to ask. So, we
- 5:27met memorable games.
- 5:29>> Yeah. And it was interesting because we
- 5:31were a small school and our coach at the
- 5:34time was uh used to be like the head of
- 5:37intramurals for the army or something
- 5:40like that when he was younger. So he
- 5:41knew a lot of people throughout Europe
- 5:43and obviously Soviet Union.
- 5:46So we play these big time protrates and
- 5:48really they're pumpless. I mean they
- 5:50they beat us and but it was packed to
- 5:52the crowd. She's like big time game.
- 5:54That's an elite play like the Russian u
- 5:57Olympic team and those guys were back
- 6:00then you know they weren't NBA but they
- 6:02were good. Yeah. Sure. So it was it was
- 6:05interesting story. One of the uh the
- 6:08trick to Russian they lost all of our
- 6:09luggage. So we had to play in what we
- 6:12had and some guys had the uniform they
- 6:14carry on. Some guys in some say our
- 6:15shoes. So we were switching out shoes
- 6:18when guys would come out of the game and
- 6:20oh switching out uniforms and I actually
- 6:22played the game in Russia and stupid
- 6:25boxer shorts because they were red and
- 6:27we were our color scheme was red. So I
- 6:30had boxer shorts on played and I you
- 6:32know I wasn't very shy. still not very
- 6:35shy, but the uh so it was kind of fun.
- 6:38But
- 6:38>> that is classic. I I once played a high
- 6:40school basketball game and our shorts
- 6:42were white and I didn't bring any a
- 6:44underwear to play for the game. So on my
- 6:46boxer shorts and they're Mickey Mouse.
- 6:48>> Yeah.
- 6:48>> So you know they're half court when
- 6:50you're bending over you see Mickey.
- 6:52Yeah. The little
- 6:54>> That's right. Yeah. He's back.
- 6:56>> All right. So you got to go to Russia.
- 6:57So that's that's cool. So that was
- 6:59freshman year you said.
- 7:00>> Yeah.
- 7:01>> Okay. All right. So you get to play in
- 7:02Russia. any other kind of just fun games
- 7:05or anything was memorable about
- 7:07>> Yeah, we had I that was the first year
- 7:09of the three-point mind. So, Hodoki
- 7:11actually set the NCAA record for most
- 7:13three-pointers in the game. So, uh
- 7:16because it was the first year partially.
- 7:18Yeah. And I held up for a few years, but
- 7:20it was interesting. We we were we
- 7:22weren't great as teen. We was way behind
- 7:24and the coach goes, "Uh, hey, we need to
- 7:26catch up. Just start shooting." I'm
- 7:28like, "Hey, I mean, never heard better
- 7:29rims in my life."
- 7:32didn't really have to tell me all that
- 7:33much but uh and then I just could it was
- 7:36one of those games where I made you like
- 7:38I 12 I
- 7:41>> Zapd
- 7:43everything's going down I just had to
- 7:44get up by the r
- 7:45>> it is going like how lucky is that to
- 7:48bake hand I'm like dude I honestly I
- 7:50went up to shoot and I still remember
- 7:52the guy was going to block it and I'm
- 7:54like I just got to get it up
- 7:55>> so I just adjusted the shot to miss his
- 7:59arm and it happened to go
- 8:01I was like I wasn't trying to make it. I
- 8:02was just trying to miss the guy's arm.
- 8:04>> Oh,
- 8:05>> yeah. So, I was best it was, you know, I
- 8:10don't act like Elmont pro player by any
- 8:12means. Oh, he's not,
- 8:13>> you know. But Blake College anywhere set
- 8:15a record like that. That's cool. All
- 8:17right. So, four years college, Rose
- 8:20Holman, which we all know is is a dital
- 8:22school, right? But coming out of Rose
- 8:24Holman, you get your degree. What do you
- 8:26What do you think you're going to do
- 8:28next? Where do you think your career is
- 8:29going to go? Yeah, I
- 8:30>> went on the path really of where I'm at
- 8:33now to be a very similar similarly
- 8:37and HVAC mechanical uh design and
- 8:40construction that kind of stuff. And
- 8:42honestly, I went that math because
- 8:44that's the only job I could get. It
- 8:45wasn't like some well thought out I'm
- 8:48going to be this kind of guy. Actually,
- 8:51the guy who hired me was a former
- 8:53basketball player, Rosewoman. So there's
- 8:55alumni connection and um you know I I uh
- 9:00that's why I started on path and I just
- 9:01kind of started with it.
- 9:02>> So So was that what did they come into
- 9:04Rose Holman? Were you doing like
- 9:06interviews with companies? So, so how
- 9:08did how did was there internship or he
- 9:10was kind of thinking?
- 9:10>> No, I didn't that I mean they had
- 9:12internships brows but I was I did not do
- 9:15I did I guess a little bit of general
- 9:16electric but um the uh yeah but mostly
- 9:20it was some companies come on campus and
- 9:23y
- 9:24>> for Johnson trolls those kind of people
- 9:25come on campus this was smaller any firm
- 9:28here in India.
- 9:30>> Okay. Uh and that guy more just called
- 9:33an alumni master guy or worked at the
- 9:36school and said any any players
- 9:39available and they said yeah this guy is
- 9:40still available and uh
- 9:42>> okay the guy was my mentor and we're
- 9:45still catching his names he was no he's
- 9:47a friend you said yeah so that's kind of
- 9:49how it started and that it was an
- 9:50interesting a very so I had a you know
- 9:53like blue collar parents like teachers
- 9:57banker types and um my first job at that
- 10:02A&E firm after about 3 months they
- 10:05couldn't payroll so they they missed
- 10:08they just skip a paycheck and then they
- 10:09pay you on time to the next star in two
- 10:11weeks okay and then they skip it again
- 10:13and then they'd be a month behind and
- 10:15then they'd catch up you know halfway
- 10:17caught up and then they would catch all
- 10:19the way up and then they would fall
- 10:21behind and it was two or three years of
- 10:23that consistently and it was I just
- 10:26didn't grow up with that it was already
- 10:28consist consistent paychecks, parents
- 10:30was worked. No one was ever unemployed
- 10:32and
- 10:32>> and just seeing that then seeing, you
- 10:34know, like adult men and women with
- 10:37families getting laid off. I'm like,
- 10:39"Holy cow, people get laid off in G
- 10:41World." It's amazing up in a little
- 10:43cocoon in Key, Illinois with teachers
- 10:46and bankers, you know, just didn't I
- 10:48have exposure to any of that and it
- 10:50really honestly helped me run a business
- 10:53later in life because I I knew that's
- 10:56not how I wanted to treat people.
- 10:57>> Yeah, sure. I was to die miss who get
- 11:00get a paycheck. So yeah like a big deal.
- 11:02Oh yeah. A big deal for me when I
- 11:04started on my business was I never
- 11:05wanted to have to miss it that
- 11:09>> sense but uh
- 11:10>> anyway so that was uh so I'm two or
- 11:13three years of that and uh it was good
- 11:16it was good experience but not it was
- 11:19engineering. It's heavy engineering. It
- 11:20really didn't suit me. And I still
- 11:23remember I was making I think like
- 11:2535,000 a year or something. And uh
- 11:30my job was to design air conditioning
- 11:32systems and a contractor would look at
- 11:36my design and estimate it and say, "I
- 11:38could do that for a million dollars."
- 11:40And then they would uh I would tell them
- 11:42what they can buy like you can buy one
- 11:44of these three types of equipment uh and
- 11:47you have to buy this type of duct work
- 11:49you this thickness of duct work and this
- 11:51size of duct work you know like that
- 11:53kind of stuff. Sure. And um
- 11:55>> I still remember those uh equipment guys
- 11:58would come in and say hey I want you to
- 11:59say I'm one of those three
- 12:01>> Yeah. pieces of equipment that these
- 12:04contractors can buy and they sell to you
- 12:06basically, you know, get you to specify
- 12:09them. And one of the guys came in and I
- 12:11heard he made $60,000 a year and I was
- 12:14like, "Hoc
- 12:17>> make 60 cran."
- 12:19>> I was spitting that money so fast. So I
- 12:22uh and I was a little bit uh less
- 12:26engineering personalitywise and more
- 12:29sales.
- 12:29>> Okay. Uh even though I would say I'm
- 12:31like some super slug salesman, but that
- 12:34was more technical sales because you
- 12:35were selling technical.
- 12:37>> Sure. Yeah.
- 12:38>> And uh so I basically just started
- 12:40calling these guys that sold to me and
- 12:42said, "Hey, I want to get into the sales
- 12:44side and that's how I got into my second
- 12:48job."
- 12:48>> No kidding. All right. So the first job
- 12:50about three years heavy tech and good at
- 12:53it. you can do it. I was coming out of
- 12:54Rose Hullman but wasn't really what you
- 12:56liked but you heard 60 grand like this.
- 13:00Yeah,
- 13:00>> I ended up you know I knew the sales
- 13:02guy. I didn't really know the sales
- 13:04manager who hired me but drew the sales
- 13:06guy. I got interviewed and I knew either
- 13:08two or three of them and uh you know it
- 13:10really and it really was a good job and
- 13:13I I spent selling because I was it's
- 13:16really more account management. It
- 13:17wasn't really like cold calling every
- 13:20day because there aren't that many
- 13:22people, you know, putting systems in
- 13:25buildings like breed, you know, this.
- 13:26Yeah, sure. Uh, so actually we did the
- 13:29work here, but the uh uh so it it was it
- 13:33was more account management. So, and it
- 13:35was selling to guys that I already knew
- 13:38like I did their job. Oh, you know, some
- 13:40of them were Rose guys or friends of
- 13:42mine and some of them were sure else.
- 13:44So, it wasn't it wasn't as salesy as it
- 13:47sounds, but it um
- 13:49>> you know, it was pretty it was pretty
- 13:50good because I could use my three or
- 13:52four years of technical
- 13:54>> and I was by that time I think a
- 13:55professional engineer. I got my PE stamp
- 13:58so I could be a sales guy but carry a
- 14:00little bit more weight because I was an
- 14:02engineer. I wasn't, you know, some
- 14:04business grad, you know, that was you
- 14:06trying to learn equipment. I was more of
- 14:08a guy who done most of their their all
- 14:11right. So, yeah. So, then I did that. Um
- 14:14I think I worked for those guys about 10
- 14:16years about decade.
- 14:17>> How'd you like it? I mean did that was
- 14:18that something you really enjoyed?
- 14:20>> You know I wouldn't say my major is to
- 14:22be a sales guy but it was it was fun and
- 14:25they treated me well and I you know I
- 14:28got promoted from a sales sales mentor
- 14:31to the sales manager you know kind of
- 14:33ran Indiana and then I got promoted from
- 14:35that to running uh sales for the same
- 14:39company in Northern California. So, I
- 14:41moved out to the Bay Area, had like
- 14:43Sacramento and Reno and uh you know, all
- 14:47the San Jose on the Bay Area places and
- 14:51uh had a good time out there, you know,
- 14:54and uh met my wife while I was out
- 14:56there. So, that was
- 14:58>> I gotta say that was old man.
- 14:59>> Well, that's the win. That's
- 15:01>> the best closing. That's right. That was
- 15:03a big one. But uh met her out there. It
- 15:07It was good.
- 15:08>> Okay. All right. So, three years behind
- 15:10the desk, 10 years out selling, and then
- 15:14moving around a little bit out out in
- 15:16the northern California, San Jose, those
- 15:17areas out there. How do you get back to
- 15:19Indianapolis? What do you do next after
- 15:21that?
- 15:21>> Yeah. So, I mentioned I met my wife out
- 15:24there at the time. She was living in
- 15:27Vegas. And I want to say it the way I
- 15:29say it all the time. And she was not a
- 15:31stripper. So, you have I had to I used
- 15:33to have to throw that in. My girlfriend
- 15:34lives in Vegas, but she's on stir, you
- 15:36know. You have to say that because
- 15:38everybody's ass. She was a mature
- 15:40murderer. But uh so we commuted for a
- 15:45not that long, about a year. Like every
- 15:48Friday afternoon I'd fly and Monday
- 15:50morning I'd fly home and then the next
- 15:52week Friday afternoon she'd fly up to
- 15:54the Bay Area. The next uh Monday she she
- 15:58would fly home. And we just Southwest
- 16:00baby every weekend. And uh pretty much
- 16:02didn't I don't think we missed a
- 16:04weekend. Very rarely would we miss each
- 16:06other on weekend. We would go see each
- 16:07other. Uh that it was it was and because
- 16:11it was fun because I'm like she would
- 16:12come to the Bay Area. We would go do
- 16:14something.
- 16:14>> Yeah.
- 16:15>> Or we go to the you know wherever maybe
- 16:17you know Reno or go fishing and Yeah.
- 16:20You know one time I could fly fishing,
- 16:22you know, to be able to eat for a guy,
- 16:23right? Or we go up to big su we go
- 16:27Monteray or we would we just run around.
- 16:29Yeah. Do you want go see stuff?
- 16:31She actually grew up pretty close rare
- 16:34Kazy Illinois not KY but kind of in the
- 16:36ballpark of that area and that's how I
- 16:38met her. When I went to Vegas once up I
- 16:41met a buddy there who knew her own guy
- 16:43for girl. So that I kind of got
- 16:45introduced to a friend but uh so we kind
- 16:48of grew up both in Hickville America in
- 16:51southern Illinois and uh so we have fun.
- 16:53and I'd go to Vegas and then we would go
- 16:55to Lake Me or we'd go to Del Valley or
- 16:58we would go to, you know, go to
- 17:00openings. She was kind of in with the
- 17:03bunch of casino owners, kids and stuff.
- 17:05So, we we go have fun in Vegas and uh
- 17:08didn't gamble a whole lot to be honest
- 17:09with you. But,
- 17:10>> you know, just had a good good, you
- 17:12know, and go to concerts and all that
- 17:14kind of stuff. But uh anyway, so while
- 17:17I'm answering your question of how I got
- 17:18back, we got married. Um literally she
- 17:22got pregnant like probably late night. I
- 17:25mean that fast. And uh she has looked at
- 17:28me and like I don't want to raise kids
- 17:29out here. And I'm like you guys had you
- 17:32guys talked to you that before really I
- 17:34mean like I I wasn't so like dying to
- 17:37stay there either. Some cah doesn't
- 17:39matter. And I'm like so where do you
- 17:40want to raise kids? She's like somewhere
- 17:41back home. I'm like well define. She's
- 17:44like St. Chicago, Indianapolis, you
- 17:47know, uh, Cincinnati, you know,
- 17:49somewhere back the way we grew up. And,
- 17:53uh, I'm like, yeah, that's probably
- 17:54where I knew I would end up back there.
- 17:56Proudly anyway. I was only out there a
- 17:59few years, so it wasn't I still had a
- 18:01lot of contacts back here.
- 18:02>> Yeah.
- 18:03>> And, uh, I basically took a demotion
- 18:06with York to come back and run the
- 18:08service department for India. Okay.
- 18:11because they had service in sales.
- 18:14>> And then in their world, oddly, service
- 18:16made all the money in that company, but
- 18:18it wasn't sales was the path to
- 18:20corporate life.
- 18:21>> Okay.
- 18:22>> And uh but I know I love that corporate
- 18:24path because, you know, those guys had
- 18:27less control of their day-today life and
- 18:29they got on the plane on Monday, got
- 18:31home on Friday, and I'm like, I actually
- 18:34like my wife, but I don't really leave
- 18:35on Monday.
- 18:36>> Friday. So I went on to the service side
- 18:39and plus the service side kind of uh
- 18:43controlled this product on the sales
- 18:45side. You sold the product and they made
- 18:46it wherever.
- 18:47>> Yeah.
- 18:48>> And then they shipped it and you you
- 18:49really didn't have any part of the
- 18:51making of the product.
- 18:52>> Yeah.
- 18:53>> You just had this is what performance
- 18:55can do. Try to buy it.
- 18:57>> On the service side the service tax work
- 19:00for you. So your product which was
- 19:02fixing things and yep
- 19:03>> maintenance contracts was you control
- 19:06it. Sure. All this service techs work
- 19:08for you and all the service dispatchers
- 19:10and coordinators get right,
- 19:13>> you know. Uh so it's more like running a
- 19:15business.
- 19:16>> Yeah.
- 19:16>> Uh and at the same time I was going back
- 19:19to get my NBA because that was about the
- 19:21time I was figuring out, you know, kind
- 19:24of I was wouldn't say it was all about
- 19:27money. It was more about success.
- 19:29>> Yep.
- 19:30>> But money usually comes with success,
- 19:31I'm sure.
- 19:33Um,
- 19:34I couldn't not get promoted that my
- 19:37promotion path would be traveling all
- 19:40the time. Yeah.
- 19:40>> And that wasn't really what I wanted to
- 19:42do, right? Yeah.
- 19:43>> So, I'm like, how what do I do? So, I'm
- 19:45like, if I start my own business, I
- 19:47would control my own destiny. And so,
- 19:49that's when I was like, I'm going to go
- 19:51get NBA, learn how to start my own
- 19:53business, and then I'll figure out what
- 19:54business to start.
- 19:55>> Wow. Okay. So, that's kind of where all
- 19:56that that when I moved back about the
- 19:59time I moved back to Indiana, I was
- 20:02probably already thinking that because I
- 20:03think I'd already started my NBA, but uh
- 20:06that was when I was kind of like trying
- 20:08to figure out like what I'm going to do
- 20:10because I'm not going to be a corporate
- 20:11guy.
- 20:12>> Yeah. You didn't you didn't want to
- 20:13travel around. You liked your wife,
- 20:14wanted to be home. Okay. So, but here's
- 20:16the thing that I'm hearing so far in
- 20:17your career, right? Come out of a a
- 20:19wonderful engineering school. you go
- 20:22work behind the desk for three years and
- 20:24then you spend 10 years out kind of
- 20:25selling it and then you come back here
- 20:27and you start to do support manage the
- 20:30service side you've really now seen kind
- 20:33of all the different ways of the
- 20:35business so so in starting you know
- 20:38thinking about starting a business
- 20:39getting your NBA
- 20:41what was your original vision starting a
- 20:44business was it to look like something
- 20:46you've already done before what was kind
- 20:48of that vision what did you want to go
- 20:49start you know you know went down the
- 20:52path, the easiest way to do it is to do
- 20:55what I already do. You know, right? A
- 20:57lot less risk, right? Because I know and
- 20:59and I had relationships and and then
- 21:01like in 03 when I started the business,
- 21:04it was I had partner so heavier 50/50
- 21:08and he was working for a contractor in
- 21:12town. Okay.
- 21:13>> That and I used to sell equipment to
- 21:15him.
- 21:15>> Yeah. Was my you got my biggest customer
- 21:17back in the day. Oh, no kidding. Yeah.
- 21:19So, and then he was like, but he wasn't
- 21:21the owner. So, we and and in most cases
- 21:23in construction, especially mechanical
- 21:26construction, most of the highlevel guys
- 21:29are owners and there not there's not a
- 21:31big barrier to entry. I mean, if you're
- 21:34pretty technical or if you're a pretty
- 21:35smart guy, you you're a leader, you just
- 21:38start your own business. Then to grow
- 21:40that business now,
- 21:42>> yeah,
- 21:42>> I had to separate some people better
- 21:44understanding, you better understand
- 21:46business and all that stuff. But that's
- 21:48why you see a lot of people in our
- 21:50industry that are 10 to 15 million have
- 21:52a range revenue side
- 21:54>> because they can maybe be a former Ike
- 21:57fitter, a former craft worker and they
- 21:59could run basically almost run every
- 22:01shot. Yeah. Right. You know, and that's
- 22:03fine. Sure. And they some kick my ass on
- 22:06that. But the thing 50 to 50 or 50 to
- 22:0980, you know, get every job crazy and
- 22:14they get lighting issues and all kinds
- 22:15of stuff. But anyway, the uh what that
- 22:18partner and I started in 03
- 22:21and uh I kind of did the I had the PE
- 22:24stamp so I was the engineer for design
- 22:27build company.
- 22:28>> I ran the service department because
- 22:30that's what I did at York and I just
- 22:31kind of did that and then I am handled
- 22:34the money.
- 22:35>> You know, it's interesting. It was 23
- 22:36years ago and I'm that crazy for you of
- 22:382003.
- 22:39>> Yeah.
- 22:40>> So when you got started and you you
- 22:41know, you kind of throw your hat in the
- 22:42ring to be an entrepreneur. What was Did
- 22:46you think you'd have a partner when he
- 22:47got started? Did you Is that the way you
- 22:49wanted to design the business? H how did
- 22:51that come about? But should you see?
- 22:54>> Good question. As much as I do, I really
- 22:56couldn't have done it without a partner.
- 22:59I knew what he knew.
- 23:01>> So you had estimate he knew how to run
- 23:03projects. He did other pieces. She
- 23:05understood the ther side on the
- 23:07construction. I understood on the
- 23:08certain side, but he understood on that
- 23:10side. you know, he had relationships
- 23:12with the general contractors. I didn't
- 23:14really have those relationships because
- 23:16I that wasn't part of my sphere, you
- 23:18know.
- 23:19>> So, and then, you know, I covered stuff
- 23:22eat it though. So, I it worked out.
- 23:24>> Okay. Yeah. Sure. At the beginning,
- 23:26until it did. So, as they say, it worked
- 23:28out till it did.
- 23:29>> All right. So, so let's talk through
- 23:30that. That's 23 years ago, right? So,
- 23:33you get started 23 years ago. You got a
- 23:35partner. At some point, though, you you
- 23:38become kind of a soul opener, right? So
- 23:39you you end up so when when does that
- 23:41happen? When does that take?
- 23:42>> Yeah. Sort of give you a little
- 23:44background. We kind of bought a real
- 23:47small company, a million half company
- 23:49revenue size. That's to have a something
- 23:52to start with. And uh I think I took a
- 23:56load out on my Jeep. I cashed in my
- 23:58401k.
- 24:00You know, my wife was I had a lane. My
- 24:03oldest was what six months old. My wife
- 24:06was five months pregnant. And I told
- 24:08her, I say, "Hey, I'm cashing it all in.
- 24:10I'm quitting my corporate job where I'm
- 24:13making 200, 250,
- 24:16start this business right in the middle
- 24:17of all this." Yeah. And for some crazy
- 24:20reason, she said, "Okay, I don't I look
- 24:22back at that." The wife, she said, "Yes,
- 24:25I have no idea." It was kind of stupid.
- 24:27Like really, if you think about it,
- 24:28like, so it was probably could have got
- 24:30me in more trouble. honestly think maybe
- 24:32I could do it. But uh anyway, so we we
- 24:35bought that million company and uh went
- 24:38to like 8 million the first year and
- 24:40then 22 and then 40 and then it was just
- 24:43like crazy grow. Yeah. And it it just
- 24:46shot like and then we you know we were
- 24:50trying to grow like that as a
- 24:51construction company is not the smartest
- 24:52thing to do but we had a little I mean
- 24:54it was like God was helping us out here
- 24:56and there you know like one year we we
- 24:59have bad year and then next year we get
- 25:01a job that really we down in Florida
- 25:04that hurt us but then a hurricane came
- 25:06and wiped all the units off the roof and
- 25:08then we made more money replacing all
- 25:10the units than making them. Then we had
- 25:13another bad year after that and then
- 25:15like oh my god you know I'm trying to
- 25:16keep the bank off our back and that was
- 25:18my job and we had so much debt and then
- 25:22I don't know if you remember the French
- 25:23L casino they were doing that job on the
- 25:27mechanical side and then the electrician
- 25:29went out
- 25:30>> and because of where that project's
- 25:32located they had trouble getting
- 25:34somebody to come finish it and we're
- 25:35like we'll give it a shot TNM you know
- 25:38like which is usual in our industry just
- 25:41paid kill
- 25:42I mean a Kelly and then it's like now
- 25:45we're the smartest guys in the brewery.
- 25:46Yeah. Right. Now we're back
- 25:47>> next year. Yeah. We went from like smart
- 25:49to dumb to smart to down to smart, you
- 25:53know, and it's it's it was it was a bit
- 25:55of a roller coaster. Uh but but it was
- 25:59really uh interesting because that was
- 26:02probably 06 07 range.
- 26:06We were flying high at the time probably
- 26:0860 billion
- 26:10but doing a bunch of office buildings
- 26:12bunch of warehouses all private work and
- 26:16traveling all over the country a lot of
- 26:17those buildings were speculative
- 26:20you know our biggest customers Duke and
- 26:22law GC's a town for you guys who don't
- 26:24know it u and then all a sudden the 08
- 26:27they hit
- 26:29>> and in our world uh the type of work we
- 26:34were doing
- 26:35Well, the down mascara. Yeah.
- 26:39>> And in all honesty, the only way we
- 26:42survived that was
- 26:46through that growth, we'd switch banks
- 26:48every couple years to get more debt
- 26:49because growing it takes a lot of cash.
- 26:52>> Uh, one somewhere along the way, just
- 26:55out of happen stance, I think I said I
- 26:58didn't want a full personal guarantee.
- 27:00I'll just guarantee a half million and
- 27:02my partner guaranteed a half million.
- 27:04And we we were doing so good that banks
- 27:06were a lot of money like crazy that
- 27:08year. And we went and all honestly our
- 27:11numbers looked pretty good after a late
- 27:12hit except we couldn't collect money
- 27:14because nobody would pay. Yeah. So it
- 27:16was like the re the margin looked pretty
- 27:19good but the balance sheet looked
- 27:20horrible because you're wiping off all
- 27:21this bad debt because nobody was paying
- 27:23you
- 27:23>> and then you couldn't lean the property
- 27:25because the properties were worthless
- 27:26because the market had tang.
- 27:30And um frankly we owed to bank so much
- 27:34money they couldn't judge now it was
- 27:36like that that's what s had to had to
- 27:38keep you in this gun having a father
- 27:40that's a banker he's like yeah like when
- 27:42you when you owe the back a million they
- 27:44owe you when you owe 10 million you know
- 27:48and they were north of that so it was
- 27:50like they were working with us trying to
- 27:52get us through that and honestly they
- 27:55were pretty fist to be frank a lot of
- 27:58people have horror stories about banks
- 28:00uh back in that time, but they were
- 28:02pretty fair with this. But at the same
- 28:05time, uh it's almost like having a sick
- 28:07ken in a regular marriage. Your
- 28:09partnership goes to hell
- 28:11>> because
- 28:12>> we're losing money now way more than
- 28:14we'd ever thought where the banks are
- 28:17tying our hands. You can't pay yourself
- 28:19this, you got to pay yourself that, you
- 28:21can't, you know, which was all fair
- 28:23stuff to do. But then, you know, the
- 28:26partnership went to help. Yeah.
- 28:28basically. And you got into a little bit
- 28:30of that infighting like I'm working
- 28:32harder than you're working. And you
- 28:33know, I'm creating all the money. You're
- 28:35a drag, you know, blah blah blah. All
- 28:38the You know what's interesting is going
- 28:40through that.
- 28:42I tell this funny story that I uh I felt
- 28:46like I could write a book like this is
- 28:48the craziest story like this part and
- 28:51all the fights we were having and all
- 28:53the underhanded stuff that was
- 28:54happening. And it's like I could write a
- 28:56book about all these crazy stories. I
- 28:58don't even want to tell stories anymore.
- 28:59They're so
- 29:01at the time they seemed like
- 29:03insurmountable your skills and I I still
- 29:05remember I'm in this association of a
- 29:07bunch of other owners of companies and I
- 29:08just joined this association. I was
- 29:10telling my dad his story. Still a good
- 29:12friend of mine and uh like it was I sure
- 29:16dude this is the craziest thing. And
- 29:18then at the end he looks at me he's like
- 29:20you think that's crazy. And then he just
- 29:21rattles off the story like works words
- 29:24and like in this case it was his own
- 29:25brother. He was like oh no it was
- 29:27Parker. Yeah. Yeah. And I'm like what?
- 29:30And then you know you start talking to
- 29:32more people and you're like it's pretty
- 29:33common story. It's not a read out book,
- 29:36right? Well, having a barbecue blow up
- 29:38when the economy goes bad is not not
- 29:41unusual. No, very unusual at the time.
- 29:45But, uh, honestly, it ended up being the
- 29:47greatest thing for me. We did get
- 29:50through it. I did find a way to to peel
- 29:52off, you know, my piece of the business,
- 29:55a lot smaller piece than he got, but I
- 29:58took a lot more debt to make it happen.
- 30:00And and I I still remember when I
- 30:03somebody like Clos if they watch this
- 30:04may not know this but when I that was
- 30:072010 I think when I finally peeled off
- 30:09but uh I borrowed as much as I could
- 30:12borrow from the bank
- 30:14>> based on the receivables I was getting.
- 30:17Uh I went on a full personal guarantee.
- 30:20Um, luckily I got off the other bank's
- 30:23guarantee, you know, which was only half
- 30:26million only with if that was a lot. But
- 30:29I couldn't even make I I left on Friday.
- 30:33I closed on a Friday unless I collected
- 30:35money Monday, Tuesday, Wednesday. I
- 30:38couldn't make payroll the next Thursday.
- 30:40No kidding. Yeah, that's how tight it
- 30:41was. And it was like that by was but we
- 30:46had it was like that or bankruptcy.
- 30:48Those were like the two options. So it's
- 30:50a
- 30:50>> I mean it wasn't like there was a plan C
- 30:53you know that was any good
- 30:55>> and we did collect some money but and I
- 30:58once again I threw all my chips back in
- 31:01you know some 20 cms essence starting
- 31:03over
- 31:04>> reaching out the 40k and all that kind
- 31:06of stuff you know
- 31:08>> uh pushed it all back in and then
- 31:11interesting part of the story back when
- 31:13you say sometimes stars aligning
- 31:16everybody talks about how great they are
- 31:18and sometimes it's just pure luck. But
- 31:20we had a big customer. I think it was in
- 31:22Missouri and it's like probably two
- 31:24months after we started, right? More
- 31:26like every week. Like I'm scared to
- 31:28death. I own his payroll. I mean scared
- 31:29to death. And I'm begging the bank to
- 31:31loan me more money and give me overline.
- 31:33I'm I mean we're watching every penny we
- 31:36spend. And this guy calls me from
- 31:38Missouri. He's like, "Hey, I got this
- 31:39project you guys are award
- 31:42projects." I'm like, "Yeah." And he
- 31:44goes, "You know, we're getting a bunch
- 31:45of state sen."
- 31:47I didn't understand that back end very
- 31:49well, but he's like, I don't spend this
- 31:51money, I lose it. Do you mind if I
- 31:52prepay you $2 million? I'm like, bro, I
- 31:58like Yeah, sure. And I did have to pay
- 32:01some vendors, you know, because I, you
- 32:04know, part I believe names for other
- 32:06people. So, I paid half million or
- 32:08800,000 of vendors, but I had like a
- 32:10million dollars of cash like from the
- 32:12guy that didn't burn off from like six
- 32:15or eight months. So it was like a
- 32:17interest free loan you know it's like I
- 32:19was like I you know like fell in my lap
- 32:22and really after 6 months we had gotten
- 32:25to stable ground and sure everything was
- 32:27fine you know it was like back to
- 32:29reality you know it wasn't like every
- 32:32Friday figuring out who to pay and every
- 32:34Thursday making sure we make payroll all
- 32:36kind of stuff it was uh back to reality
- 32:38so it was uh you know I'd like to say
- 32:40I'm just zero smart guy and made that
- 32:42happen but you know that was a total
- 32:44random
- 32:44>> Wow.
- 32:45You know, that's wild. Just as about
- 32:472010, that's not that long, but 16 years
- 32:49ago, you throw all your chips back in.
- 32:52But that that's cool. So, for for people
- 32:55listening in, it might be good to tell
- 32:58folks a little bit more about what you
- 33:00guys do, right?
- 33:01>> So, so tell me a little bit about about
- 33:03Prec. What do you guys do, who you
- 33:04serve, and then what's the business look
- 33:06like?
- 33:06>> Yeah. So, we um are predominantly what
- 33:10people would call in mechanical services
- 33:13space. So all commercial or industrial
- 33:15type work. So building like grad systems
- 33:18or Amazon warehouses or uh industrial
- 33:22facilities uh like uh IPL you know the
- 33:26utilities gons
- 33:28you know some laboratory work like
- 33:30coance labs or down Lego or Lily you
- 33:34know we do some work at those places um
- 33:37and but mostly around refrigeration or
- 33:40or air conditioning sometimes comfort
- 33:43cooling some of process cooling
- 33:45>> so mostly kind of around that. Then we
- 33:47do some other things. So like uh on we
- 33:52have a big service department that does
- 33:54break fix. So if you're hot, if it's
- 33:56cooling, if you're hot, you call us.
- 33:58Yep. We come out to your office, try to
- 33:59figure out what's going on. Uh or
- 34:02process cooling. If it's cool in the
- 34:03process, you know, the product should be
- 34:06x temperature. It's not old x
- 34:07temperature. They call us, we come out,
- 34:09try to figure out, oh, what's going on
- 34:11in the system that is not keeping the
- 34:13temperature. Sometimes at laboratory
- 34:15it's not coolant clean room jack stuff
- 34:18where it's got to be super clean got to
- 34:21be pressurized. It's got to be, you
- 34:23know, 64 degrees, you know, even though
- 34:25there's people in there. Sometimes it's
- 34:28processed cool where it's food where
- 34:29it's minus 20. Yeah, it's a big 200
- 34:32square thousand square foot. Where else
- 34:3420? It's not like your home refrigerator
- 34:36e but it's like that. It's just 200,000
- 34:39worth. But
- 34:40>> uh so we do a lot of that type of work
- 34:42and a lot of that is service work like
- 34:44break fix. Yeah.
- 34:45>> A lot of that is new construction. Um a
- 34:48lot of that is what we call service
- 34:50projects like we out there can't fix it
- 34:52we need to replace it. Yep.
- 34:53>> So that's a service project. Um and then
- 34:57uh so that's kind of roughly at a high
- 35:00level and then you know getting a little
- 35:02more granular we have like a multif
- 35:04family division that does plumbing and
- 35:06HVAC for apartments. Okay.
- 35:08>> We don't do any residential work but
- 35:11that we have a division that does that.
- 35:13We have a division that does commercial
- 35:16projects which will be warehouses,
- 35:17office that kind of stuff and new
- 35:19construction.
- 35:20>> Yep.
- 35:20>> We have a division that does industrial
- 35:22refrigeration which uses ammonia as a
- 35:24refrigerant
- 35:25>> really.
- 35:25>> So that is it's really a pretty
- 35:27efficient. It's the most efficient
- 35:29refrigerant. Most people don't know but
- 35:31it does have parts and side effects,
- 35:33right?
- 35:33>> So it's of safety concerns, right? Um,
- 35:36so some people don't want to use it
- 35:37because the safety like want to, you
- 35:40know, honestly if we wanted the the
- 35:42greenest gas, we would use a bone here.
- 35:44Right. Right.
- 35:45>> But, you know, would kill people if you
- 35:47have a release. So, that's a half of a
- 35:48challenge. That's right.
- 35:50>> So, that's why there's a lot of service
- 35:52work there and a lot of uh fewer people
- 35:55doing that type of work is you better do
- 35:57it right. Yeah. you a lot of press
- 35:59testing, a lot of weld certifications,
- 36:02you know, a lot more than on a hydraulic
- 36:04system.
- 36:05>> You know, if a system gear leaks, you
- 36:07got some wire damage, you know,
- 36:10>> from your system leaks, everybody's in
- 36:12the plant, that kind of stuff.
- 36:15>> But the uh so that that's kind of it in
- 36:18a nutshell. But you know why I kind of
- 36:20focus more on
- 36:23less we'll say like school work and less
- 36:27hospital work less big projects like
- 36:29Peter would think of and more design
- 36:31build where we're the engineer of record
- 36:34and more medium size you know story
- 36:36office buildings that kind of stuff uh
- 36:39we'll do we'll do larger jobs like we're
- 36:41doing a
- 36:43a project right now it's called a box we
- 36:46call it box in a the warehouses are to
- 36:49gulp and they're putting it's a million
- 36:51square footer and they're putting about
- 36:52a 200 or thousand square foot freezer
- 36:54inside it
- 36:55>> and we're doing the freezer inside it.
- 36:57Okay.
- 36:57>> So that's a pretty big project. That be
- 36:59an example. So okay guys so really
- 37:02everything from that down to apartments
- 37:04by across the street here. Sure.
- 37:06>> Indiana focus
- 37:09national. Yeah, the the the uh the
- 37:13commercial the service work commercially
- 37:17uh and the industrial FAC service work
- 37:19is more central Indiana, central Ohio.
- 37:22>> Okay.
- 37:22>> The industrial refrigeration amount work
- 37:24is is country all country. It's a little
- 37:28bit both.
- 37:28>> Gotcha. Okay. We we do travel but I'd
- 37:31say I'd say 26 probably 75% of the work
- 37:36in Indiana, 25% elsewhere. Okay. I kind
- 37:39of got your butt. So
- 37:40>> awesome cool story up until now, right?
- 37:42Learning your background, all the
- 37:44different things you did, throwing your
- 37:45chips in multiple times, met yourself,
- 37:48right? And so one of the things we like
- 37:50talking about because we get a chance to
- 37:52talk to for-profit folks and nonprofit
- 37:54folks from all different kinds of
- 37:55businesses is technology, right? So in
- 37:58in your business, where is tech today?
- 38:01Kind how how may are you leveraging
- 38:03technology to serve your your people or
- 38:07your clients maybe? Where do you see it
- 38:08go in the future?
- 38:09>> Yeah, I have an interesting story, you
- 38:11know, back to my overconfidence part. So
- 38:15a lot of our tech uh from the beginning
- 38:18as we went through say 2010
- 38:22uh was customdeveloped by us really by
- 38:26programmers be hired in 0 probably 06 07
- 38:31I'm like man I'm I'm so smart developing
- 38:35our own customized programs I should
- 38:37just buy the company that's developing
- 38:39for me and sell it
- 38:40>> and then sell the stellar contractors
- 38:43So I bought them and uh or we bought
- 38:46them that bug with my part at the time
- 38:48and uh didn't sell one zero. So that was
- 38:52an extensive lesson that maybe I was
- 38:53quite as smart as I thought I was. While
- 38:56that program was great for us, it really
- 38:59didn't it was it was too much for us.
- 39:02You know what I mean? Sure. But uh and
- 39:04then eventually I kind of wound it down
- 39:07and just supported our programs and then
- 39:10eventually I'm like what am I doing? I'm
- 39:11not I'm not a programmer. I'm not the
- 39:13software company. I should just go buy
- 39:15something off the shelf.
- 39:16>> Yeah.
- 39:17>> Then I bought stuff off the shelf and it
- 39:19really wasn't as good as our stuff for
- 39:20us because it wasn't designed just for
- 39:22us. Sure. But it's still, you know, I
- 39:24didn't it was the right thing to do. So,
- 39:28uh,
- 39:29then store. So, that cost me a lot of
- 39:31money. Said, but so I know a lot about
- 39:32it. But, so I book pretty much on, uh,
- 39:35using off-the-shelf type stuff, but
- 39:38built specifically for sure. Sure.
- 39:40>> Uh, but that changes rapidly. Uh and
- 39:44frankly we just changed our whole
- 39:47software stack last and 25 and that
- 39:50pretty much took my whole year up
- 39:51because you'll see I'm pretty
- 39:53comfortable in that world the and I'm
- 39:55very anal about the numbers tying out me
- 39:59believing then I wasn't believeing the
- 40:01numbers with the system but uh our
- 40:04industry frankly is is labbing other
- 40:07industries okay and so we're getting
- 40:09kind of drugged along into this. I mean,
- 40:11I'd love to be just like the other
- 40:13industries, but an example would be our
- 40:15uh North Service tax like our old system
- 40:18before the we just switched to it was
- 40:21pretty archaic. The dispatch board, you
- 40:24know, how we set guys and how we
- 40:26schedule them out, all that kind of
- 40:27stuff. And, you know, how they capture
- 40:30could capture pictures while they were
- 40:32on site or not. It just wasn't, it
- 40:34couldn't do any of that. And our
- 40:36customers, you know, they're not like
- 40:38super tech people, but they buy stuff on
- 40:40Amazon and they get a picture every time
- 40:42it shippers up. That's right. And they
- 40:43buy stuff on Door Dash and they could
- 40:44watch the guy come and see him. You
- 40:47know, when he's on his way, they see
- 40:48where he's at. That's right. And you
- 40:50couldn't see that with our tech. Yeah.
- 40:51In our industry, almost nobody's doing
- 40:53that. So
- 40:54>> then people are calling us and people in
- 40:56our I think resi guys are getting pretty
- 40:58good at that. Yeah.
- 40:59>> Residential ACC world, it's a little
- 41:01more to a consumer than we're a
- 41:04business.
- 41:04>> Yep. Those people that work in the
- 41:07business are consumers, too. That's
- 41:09right.
- 41:09>> And they're used to seeing that where's
- 41:11my Amazon page? That's right. Why isn't
- 41:13it here in three hours? You know, like
- 41:14your is going to be we're going to be
- 41:16here three days. That's ridiculous. You
- 41:17know, and so we're get kind of drugged
- 41:19along. And we're trying to be in the
- 41:21forefront of that. And I feel like we
- 41:22are. And one of the reasons we put so
- 41:24much money and effort into switching
- 41:25tech last year was so we could use a
- 41:28newer jack that has all those bells and
- 41:31whistles, that has, you know,
- 41:33everything. And like one of the things
- 41:35it does is uh when the guy says he's on
- 41:38site to geo taxi. And that's not so much
- 41:41so that I could prove my guy was there
- 41:44and not pay the guy if he wasn't there.
- 41:46It's the customers demanding it. Yeah,
- 41:48sure. They're calling me saying your guy
- 41:50wasn't here at 8 a.m. and you're
- 41:51charging me from 8 a.m. to do him. And I
- 41:54if I don't have it geotagged, I can't
- 41:56tell you. Yeah, he was there. That's
- 41:57right. You know what I mean? And the
- 41:59customer doesn't believe I can't just
- 42:01say believe me. They say, "Well, I can
- 42:03see the Amazon guy. I can see the Uber
- 42:05Eats guy.
- 42:06>> I can see the Uber guy." Like, they
- 42:09weren't accepting, you know, weren't
- 42:11accepting. Like, just take my word for
- 42:13it.
- 42:14>> Yeah.
- 42:14>> Because they're used to these other
- 42:16companies.
- 42:16>> Yep.
- 42:17>> Using this tack. So, we switched to that
- 42:19tech and it it was painful. I mean,
- 42:21every time you switch tech, it's
- 42:23painful. Oh, yeah. And uh but I think
- 42:26we're already seeing fruits of it, but
- 42:28in the next 12 months we're really
- 42:30getting really ping along, you know, and
- 42:32everybody hearing the data correctly,
- 42:34>> that kind of stuff. So uh you know that
- 42:37that that particular software is called
- 42:39Billops and they're kind of the leader
- 42:42in our industry, but yet interestingly
- 42:45they're really good at selling which I
- 42:48was sure everybody says the same story,
- 42:50right? they they sell you they can do
- 42:52all this stuff and then
- 42:53>> sure
- 42:54>> they can't quite do it yet or it's on
- 42:55the what they call it on the road map a
- 42:57little higher SC that one more chat my
- 43:00main comment that um you know so it's
- 43:03not perfect but um you know I'm pretty
- 43:06comfortable in that world and I would
- 43:07feel like in our commercial industrial
- 43:10mechanical space we're maybe not the
- 43:12leader but in the top five or 10%
- 43:15techwise I'm not afraid to invest in it
- 43:17I'm not
- 43:18>> afraid to make changes as much as My
- 43:20guys hate the changes. You know, you got
- 43:23to explain the why. You're wrong. You
- 43:24got to change the management. It's a big
- 43:26deal. Especially when you look at shop,
- 43:28you know, craft workers that are like,
- 43:30why? Why do I have to take a picture?
- 43:32>> Yeah, dude. You have to take a picture.
- 43:34>> The customer's not going to pay me.
- 43:35That's right.
- 43:35>> If the customer pay me, I can't pay you.
- 43:37>> That's right. I'm sorry. I I'd rather
- 43:39you don't have to take a picture, too.
- 43:40But you got a phone in your hand. You
- 43:43know, just take a before and after
- 43:44picture. Yep.
- 43:45>> It's not that hard. You know, I know
- 43:47you're doing the work. And then some of
- 43:49these guys like well if you really don't
- 43:51want to take a picture is it is there is
- 43:53there something I'm I don't know
- 43:54>> right yeah
- 43:55>> you are changing that filter right
- 43:58>> you know you are cleaning that coil
- 43:59right
- 44:00>> just take a picture of it clean it's not
- 44:03that big of an ask in today's wack right
- 44:05then usually explaining the light to
- 44:08them is pretty simple you're like aren't
- 44:10you getting picture when the Amazon
- 44:11package drop off and they are they are
- 44:13right there they're consumers too like
- 44:16we're
- 44:16>> that's what everybody's demanding It is
- 44:18the evolution, right? To to say, "Here's
- 44:20what it's coming. Get the little pizza
- 44:22tracker. I know when you're going to be
- 44:23here, when to expect you." It's
- 44:26interesting to hear, you know, kind of
- 44:27your business, you say, lagging a little
- 44:29bit and that you guys are trying to push
- 44:31to the forefront because I mean, at the
- 44:33end of the day, customer service and
- 44:35what customers want what's going to
- 44:37continue to drive your business.
- 44:38>> Well, and a lot of it is these legacy
- 44:41softwares that are massive and owned by
- 44:44massive companies. I mean, the rewrite
- 44:47Yeah.
- 44:48>> Is unbelievably expensive and they kind
- 44:51of lock you in. It's hard to switch.
- 44:52It's hard. A lot of guys don't want to
- 44:54switch and spend like I believe my whole
- 44:56summer because we switched, right?
- 44:58>> And that's pretty much what I spent
- 45:00seven hours a week hot all summer was me
- 45:03grinding through software trying to
- 45:06>> get to where I believe the numbers and
- 45:07get, you know, trying to figure out if
- 45:09you don't enter this correctly, this is
- 45:11what happens. And, you know, trying to
- 45:13get 200 plus people to enter stuff
- 45:16correctly. Well, that's that's a lot of
- 45:18work. Uh, and it's a lot of effort on
- 45:21the overad on the I would say over we
- 45:24didn't like have to really add people
- 45:25for it. It's a lot of bourbon sub. Yeah.
- 45:27Because some of those people have been
- 45:28doing the same software 10 plus years.
- 45:30They're experts at it.
- 45:32>> When they switch, it's like dude, you're
- 45:34screwing up my whole world.
- 45:36>> Everything just [ __ ]
- 45:36>> And then trying to, you know, back to
- 45:39you're asking a little bit about how we
- 45:40run the company. Like having a good
- 45:42culture is like super important to me.
- 45:45And I know that's an overused word and
- 45:46everybody says that and you know and
- 45:50it's it's hard. Yeah. You know it's a
- 45:52lot of work and honestly it takes my
- 45:56personal involvement and I can tell when
- 46:00I get lazy honestly in six months or a
- 46:04year I'm not as prevalent. I'm not as
- 46:07involved. I'm not as employee facing
- 46:11culture. You can see it. You can tell
- 46:13>> you can see it. And yeah, and it's like
- 46:15it's my fault and I know it's my fault.
- 46:17>> And you know, I say lazy maybe too
- 46:19strong or but you know sometimes you
- 46:21just get wore out. Yeah. You know I get
- 46:23a little wore out and I'm as I said I'm
- 46:25not exactly Johnny extrovert out there
- 46:27that shakes hands all I politician ever,
- 46:30you know, but that kind of guy.
- 46:32>> I would rather just go work and go home,
- 46:34you know, and I'd rather not sit around
- 46:36at 5 to 5:30 and than just yuck it up
- 46:40with guys. It's just I'm not I don't
- 46:41really think a homie to do with my life
- 46:43on my kids and go hang out my buddies
- 46:44and R.
- 46:45>> I don't I'm not like that tied to my
- 46:48work life, you know,
- 46:49>> like I need to be so right to some
- 46:52degree. And uh you know, we we
- 46:56put a lot of effort into uh treating
- 46:58people, you know, respectfully, hiring
- 47:02people that care, you know, because
- 47:04that's about 95% of the person cares.
- 47:07you know, they're gonna try to do the
- 47:09right thing if they're just trying to
- 47:11collect a paycheck. Could could care
- 47:13less, you know, and you cannot put every
- 47:16procedure in the world in place,
- 47:19>> right?
- 47:19>> You could be as nice to them as you
- 47:21could beat your decide on a matter. But
- 47:23>> well, how you hire guys is very
- 47:25important and uh it's been a long that's
- 47:28been a long journey because that's
- 47:29that's
- 47:30>> for me personally that's effort.
- 47:32>> It's not like what I would naturally
- 47:35come second nature, right?
- 47:36>> Yeah. be I would be much more
- 47:37comfortable, you know, running a
- 47:39investment firm where I just looked at
- 47:41numbers all day long,
- 47:43>> you know,
- 47:44>> bought money.
- 47:46>> Yeah, sure.
- 47:46>> And looked at the trend line and versus,
- 47:49you know, walking around the office and
- 47:50uh asking everybody how the weekend was
- 47:53is not really my gig, but but I I do it.
- 47:56I It's not that I don't care. I mean,
- 47:59it's just it's just not that chitchat
- 48:02wouldn't, you know, I would have like
- 48:03400 things in my head that I need to get
- 48:06done, you know? You you know, yeah, I'm
- 48:07a little bit more task oriented that
- 48:09way. But, uh, I think we built, you
- 48:12know, a great um a great culture. And
- 48:16honestly, I I gave you an interesting
- 48:18story. So, in
- 48:202019, I sold a division
- 48:24of my company, the the ammonia division.
- 48:26I was catching
- 48:28And it really was the first time I went
- 48:31from all the chips and to actually
- 48:34having some chips in my bank account.
- 48:36Okay. I mean, I got a little bit my bank
- 48:39down before they knelt down with not
- 48:40much really after that. And it was and
- 48:43I, you know, from that time 2010 to
- 48:462019, I was buying company when I say
- 48:49buy companies sounds so glamorous, but
- 48:51it was kind of I bought a lot of
- 48:52companies for the bankrupt. I I did buy
- 48:55a few and I was just borrowing more
- 48:57money. Yep.
- 48:57>> And it was pretty easy to go from owing
- 49:00the bank five million to owing them
- 49:01eight billion. You owe them eight to
- 49:03owing them 12 to owning 12. I can't pay
- 49:05five million. I sure can't pay 12. So
- 49:07what's the for right? Just leverage.
- 49:09Leverage. Yeah, you're leverage. And I
- 49:11would just borrow and and and
- 49:14grow and then growth took more cash and
- 49:16then I'd find another acquisition. I
- 49:18would go buy that guy and borrow.
- 49:20Sometimes I'd almost b borrow off their
- 49:22balance sheet. Sometimes I borrow off my
- 49:24balance sheet. that I would well I said
- 49:26mind the companies
- 49:28>> this whole time I wasn't really
- 49:30>> I mean I was paying myself well and I
- 49:32was living well I live with house all
- 49:34that kind of stuff but
- 49:35>> but if the business went under I was I'd
- 49:37be broke you like
- 49:39>> you know I didn't have any money.
- 49:40>> Yeah. Yeah. So anyway 19 I sold that
- 49:43division and was able to basically get
- 49:45debt free and actually have money in my
- 49:47bank account. Oh and then the calculus
- 49:50of buying companies changed
- 49:51dramatically.
- 49:52>> Yeah. Where is Mike Webster ready to
- 49:54check? I've got there you go.
- 49:56>> That's me.
- 49:56>> Versus it's a big difference. You know,
- 49:58it really it really tight me up honestly
- 50:00and it was kind of interesting just
- 50:02looking at myself in the mirror being
- 50:03height.
- 50:04>> Why was I so willing to do this bank
- 50:07money but not willing to do it with my
- 50:09money?
- 50:09>> But uh long long uh point long story to
- 50:14your point after I sold that division in
- 50:1719 it was a bunch of good guys. I mean,
- 50:19friends, you know, it was one of the few
- 50:22times I I've made big decisions like
- 50:24that without my wife's buying.
- 50:26>> She was like, I don't you don't make
- 50:28decisions like this based on money. That
- 50:31was based on me getting money. She's
- 50:33like, that's just not
- 50:34>> it really kind of goes against your
- 50:36culture, what you say to people. I'm
- 50:38like, but baby, um, I'm sleeping with a
- 50:40grill on my chest every night. I'm like,
- 50:42you're right. Yeah, I'm tired. Like
- 50:44Abby, it's like I I'm fearful of missing
- 50:47barrel or going broke like all of the
- 50:49time trying to keep the bank happy, you
- 50:51know, all the time on this like I'm
- 50:53wrote the time that I was 19. So that
- 50:55was what 16 years that living that way,
- 50:58right? Yeah. And uh you know that was
- 51:00great. I loved it.
- 51:02>> But it was a lot of pressure.
- 51:03>> Yeah. Sure. you know, and it was a lot
- 51:05of those people were my friends and they
- 51:07were relying on we beer like payrolls
- 51:09and you know I mean anyways I I sold
- 51:12those friends in essence because kind of
- 51:14split baby and uh
- 51:18you know it worked out well and I think
- 51:20it worked out decently for them but
- 51:22after five or six years I heard all my
- 51:26nonpaids and solicits ran out and I
- 51:28heard a couple of those guys were
- 51:30looking
- 51:30>> Yeah.
- 51:30>> And so I I called them up I said hey
- 51:32Matt So, I'd love to hire you back. They
- 51:35go, I'm not doing pneumonia anymore. I'm
- 51:37not doing dust refrigeration. I'm They
- 51:38were They're great guys, good friends.
- 51:41I'm like, if you guys are leaving, call
- 51:43make me your first call. That's all I
- 51:44ask. And I'll find a spot for you. Y
- 51:47>> you could do this that or my company.
- 51:50Then like two weeks later, they said,
- 51:51"Yeah, uh, we're leaving, but everybody
- 51:54wants to leave and everybody wants to
- 51:55come back and work for you." And so,
- 51:57well, and I'm like, "Everybody?" And
- 51:59he's like, "Yeah, like 22 to 30 people."
- 52:01Oh. And I'm like,
- 52:03H and so I'm like hold on I'm going to
- 52:05think about that. So once again it's not
- 52:07house money anymore buyers. Yeah I
- 52:10didn't have to buy the company. I just
- 52:11had to hire a bunch of people once but
- 52:13with no work.
- 52:14>> That's right.
- 52:14>> You know so but about I mean I think I
- 52:18hiring 30 and north of 20 25 maybe even
- 52:22were ex employees.
- 52:24>> Wow.
- 52:24>> Like people that I was mentioned that
- 52:26knew the wanted to come back and work
- 52:28with us. Yeah. because they've liked
- 52:29where it goes before I like working for
- 52:31the other guy and then I got and sold
- 52:33sell a couple times like private equity
- 52:35and so they you know they they didn't
- 52:37have the greatest experience right it's
- 52:39just they did
- 52:40>> they didn't treat him yeah
- 52:41>> like you can't
- 52:43>> and I'm sure a lot of industries are
- 52:45this way now but for sure in our
- 52:48industry those guys can go get a raise
- 52:51every one of my boys get raised they
- 52:53could go somewhere
- 52:54>> especially the cursor
- 52:56>> and maybe not a big raise And maybe it
- 52:58would sell for them, but
- 53:00>> they could go make more B.
- 53:01>> Y
- 53:01>> So you can't like treat them like
- 53:04>> I didn't you got to treat them well get
- 53:07to know him and
- 53:09>> listen to them, you know, and but that's
- 53:12what was not happening. sort of all
- 53:14those guys wouldn't come back and uh
- 53:17which that kind of goes back to our
- 53:18culture that that kind of made me feel
- 53:20like you know and then I think yeah
- 53:23>> 25 30 people want to come back work for
- 53:26these sold business.
- 53:28>> Sure.
- 53:28>> And then they also also wanted me some
- 53:31goodwill with my wife. So
- 53:33>> yeah I made her her friends too.
- 53:35>> She's like oh my god. And then uh so we
- 53:38got them all back and um the uh you know
- 53:43some of those people had one of the
- 53:45ladies she's like my sister was working
- 53:48with me at York International like that
- 53:50long got oh no kiss way yeah she'd been
- 53:52with me you know off and on a lot of
- 53:54these people flip me occasionally and
- 53:56then they come to light her and I give
- 53:58out a boomerang so every time somebody
- 53:59does that I I buy this little $10
- 54:02boomerang and sign it and glad to have
- 54:04your back and hand them a boomerang.
- 54:05That's classic. And uh anyway, so like
- 54:08there's a lot of those sort there's
- 54:09probably probably 40 people have
- 54:11boomerangs in our office, but the uh um
- 54:14the uh so they all came back and when
- 54:17they came back, you would not believe
- 54:19the cultural uplift when they came back
- 54:23because those guys had worked some place
- 54:24that wasn't so nice. Yeah. Oh, they came
- 54:27back. They wanted to go back and they're
- 54:29like, and I'm sure there's obviously not
- 54:31part of the conversation, but like
- 54:33>> it's not the greatest places out there.
- 54:35You other places are
- 54:37>> don't treat you like the way these guys
- 54:38treat you, you know, and make it was a
- 54:41good feeling. So, right now,
- 54:43>> um, that was what just happened in
- 54:44October of 25.
- 54:46>> But, uh, Wow.
- 54:47>> Yeah. Thanks. It's kind of like
- 54:49everybody's back, the band's back
- 54:50together, man. Back together.
- 54:51>> Everybody's back together. You get
- 54:53everybody back. Your wife's happy.
- 54:55>> Yeah. Yeah. I bought a lot of cash, but
- 54:56other
- 55:00guy got part of those. It wasn't one of
- 55:02those no-brainer business decisions
- 55:04except for the fact that, you know,
- 55:06those first several weeks I'm paying
- 55:08them all and there's not going to work
- 55:10yet. I was kind of like, oh, that hurt,
- 55:13you know, so that hurt. Well, the next
- 55:14paycheck like, oh, that hurt. Uh but uh
- 55:17but then you know they got work and your
- 55:20customers you know wanted to
- 55:22>> you know our customers most the good
- 55:24part is most of those customers were our
- 55:26customers before 19. Yeah.
- 55:28>> So it wasn't a big stretch to say you
- 55:30want to come back to 3G.
- 55:32>> Yeah.
- 55:32>> They were like yeah sure you know you
- 55:34guys treated us well. So that's like you
- 55:36know we have some it all worked out.
- 55:38>> That's awesome. All right. So before we
- 55:40get into what's fun you mentioned white
- 55:42and you mentioned your first kiddo. So
- 55:44tell me a little bit about the I I think
- 55:46uh you know one of the things that
- 55:48people talk about is that God gives you
- 55:50what you can handle. He did give me a
- 55:53lot of kids but he gave me good kids
- 55:55like miraculously.
- 55:57That's my wife deserves credit for the
- 55:58parenting way more than me. But the um
- 56:01uh they made good kids but we had five
- 56:04kids. So, mind you, back when I said I
- 56:07started the business, I had a
- 56:08five-month-old and one that had five
- 56:12months in the stomach. And uh then we
- 56:16went on to have five kids in five years.
- 56:18So, we had Kitty, we had girl, girl,
- 56:21girl, boy, girl, twins.
- 56:25So, they're they're about five years
- 56:26apart. And it was total utter chaos at
- 56:30the beginning. I mean, chaos. Uh I mean
- 56:34unbelievable amount of chaos those first
- 56:36few years but the uh
- 56:39you know I guess the kids are always
- 56:40pretty and we had Andrea my wife was
- 56:43great at parenting them and uh you know
- 56:47I was helping the business.
- 56:48>> Yeah. Right.
- 56:49>> Uh you know I didn't have to travel much
- 56:51so I was home on nights and weekends and
- 56:53they're just so good. But uh you know
- 56:56two one one graduated from Alabama one
- 56:58one graduated from Nor Eastern in Boston
- 57:01and it's about like you think the
- 57:02Alabama is more like me you know likes
- 57:04to have a good time a sorty girl you
- 57:07know tip and yuck you see on Instagram
- 57:08and the northeastern girl like worked
- 57:11most of the time through college and
- 57:13traveled the world and you know super
- 57:16businessminded
- 57:18but those two live together Nashville
- 57:20Tennessee so okay they're off on their
- 57:24and I got one in Miami, Ohio, a
- 57:25sophomore and two uh sack cathedral
- 57:29wardro Cathedral juniors. So that's
- 57:31awesome.
- 57:32>> Yeah, they're all, you know, nothing
- 57:35nothing. They're just great kids. Yeah,
- 57:38have fun together. Do a lot of family
- 57:40vacations. They still like to come hang
- 57:41out with mom and dad. You know, it's not
- 57:43that hard because mom and I have like
- 57:46that time. So, um you know, it's not
- 57:49like we're stuffy parents. Yeah, right.
- 57:51dates, you know, it's more like, you
- 57:53know, Andrew and I go to Bonnaroo almost
- 57:55every year for like a three or four day
- 57:57music festival that it's more like the
- 57:59kids are asking to come with us, you
- 58:00know, right?
- 58:02>> Not yet.
- 58:04>> Maybe
- 58:06we'll take her concerts, but not
- 58:09yet.
- 58:10>> Not yet. Maybe.
- 58:13>> Oh, man. But uh there so it's not like
- 58:16for we have
- 58:18>> Yeah, you should. I mean, at the end of
- 58:19the day, your kids will hang out with
- 58:21you. From a father of five to a father
- 58:23of five, there's not many of them.
- 58:24>> Yeah.
- 58:25>> And I've got good kids, too. Primarily,
- 58:27it's my wife. You've met me, so you'll
- 58:28say, "Hey, I uh but but so but outside
- 58:32of work having fun, you go to Bonnaroo
- 58:35doing things like that. What do you guys
- 58:36do for fun?" Yeah, we you know, we don't
- 58:38have like one specific vacation spot,
- 58:42you know. I mean, but we just like going
- 58:44traveling with friends. I mean, we do a
- 58:46lot of music festivals or music or
- 58:49concerts, a lot of that kind of stuff. A
- 58:50lot of, you know, last summer we took
- 58:54all of our kids to uh Italy and with 40
- 58:58plus other friends.
- 59:00>> We stayed home big compound for a
- 59:02buddy's 50th birthday party and uh I
- 59:05married my buddy as his birthday and his
- 59:08wedding. I was the the ordained
- 59:11minister. No, but if you guys know me,
- 59:13it's it's quite hilarious. Mark minister
- 59:17type, but um funny story related to that
- 59:20to give you some insight. Then uh
- 59:24bride and groomer are great for healing
- 59:26in the arc. But the uh bride asked me to
- 59:29marry him with my shirt off and I'm kind
- 59:31of known to take my shirt off. We're
- 59:33having a good time that you know at
- 59:35concerts and festivals I never got my
- 59:37shirt on. just goofing off, you know,
- 59:39just laughing like tell my wife God bods
- 59:41her in. She's like, "Really?" I'm like,
- 59:42"Yeah, take her in." But uh but then my
- 59:46wife said, "Absolutely no way." So, man,
- 59:48this is this is like an under. I had the
- 59:50bride says she wasn't sure off and my
- 59:52wife says she'll kill me. So, I think I
- 59:55threatened the deal pretty well where I
- 59:56married him, with my shirt on, but as
- 59:58soon as they said I do, I took my shirt
- 1:00:00off and then spent the rest of that with
- 1:00:02my shirt off and uh whatever they call
- 1:00:04that thing, the sage thing around you
- 1:00:06with, you know, crosses on. Oh, nice.
- 1:00:09And um Oh, and then all of our uh all of
- 1:00:12our kids were there. It was interesting
- 1:00:15story. the uh so there's like 50 of us
- 1:00:17there, you know, all partying in Italy
- 1:00:20and we told our kids like, "You got to
- 1:00:22get something for the pride girl. It's
- 1:00:24like four or five best friends." And uh
- 1:00:28the kids did they decided to do a flash
- 1:00:31mob and do the dance. So they
- 1:00:33choreographed an entire band. They put
- 1:00:35the bride and groom out in the middle of
- 1:00:37the is in the middle of this castle
- 1:00:39compound outdoor, but they put the bride
- 1:00:42and groom and and chairs and then they
- 1:00:45did this crazy choreograph dance all and
- 1:00:49then lifted them up on the chairs and
- 1:00:50and did like a big everybody followed
- 1:00:53them around the courtyard dancing and
- 1:00:57you know just it was pretty cool moment
- 1:01:00for the catch because they uh you know
- 1:01:01they there was probably of the 50
- 1:01:04there's probably 15 teenagerish kids,
- 1:01:07you know, and uh because I had five of
- 1:01:09them, so most of them, but the uh you
- 1:01:12know, so they trained all the kids.
- 1:01:13>> Yeah. Yeah. So all the kids that dance,
- 1:01:16>> it was free fun.
- 1:01:17>> Oh man.
- 1:01:18>> I'll tell you, we could talk all day
- 1:01:20long. The story from town of 3000, you
- 1:01:24know, looking at 80 people in your high
- 1:01:26school class, going to Rose Hullman,
- 1:01:28playing basketball and football,
- 1:01:30traveling to Russia as a freshman,
- 1:01:32right? working through your career,
- 1:01:35starting behind the desk, then out
- 1:01:37sales, then run in service, you know,
- 1:01:39throwing your chips in multiple times
- 1:01:41when it comes to the business and having
- 1:01:43a couple of times where, you know,
- 1:01:45something didn't happen, you know, the
- 1:01:47business could have taken a turn. Man,
- 1:01:49your story is awesome. Thanks so much
- 1:01:51for sharing with me. Appreciate it. Next
- 1:01:53up,