The seeds of growth sown in 2005 at Myers Industries have yielded an early harvest. In April, the international polymer manufacturer and distributor of tools and supplies to the tire and vehicle service industry announced net sales of $244.9 million for the first quarter of 2006—an all-time record for any quarter in the company’s 72-year history.

The record quarter comes in the wake of a record year for Myers Industries, a year in which the company boosted sales by $101 million compared to 2004. And according to the company’s 2005 annual report, continued growth is on the horizon.

“Our stronger performance in 2005 was just the start of what we believe is good momentum for growth,” said president and CEO John Orr in his message to shareholders. “Myers Industries is evolving and becoming more disciplined through five key operating principles that are central to defining the priorities behind our strategic business evolution process: 1) business growth 2) customer satisfaction 3) cost control, 4) organizational development, and 5) positioning the business for the future.”

At Myers Tire Supply, the organization’s distribution segment, the company implemented each of the operating principles to help the division truly evolve. Most notably, the company established a new distribution facility in Brazil to capitalize on emerging opportunities in its tire service markets. As a result of the growth strategy, Myers Tire saw sales jump 11% and set yet another company record with $189.9 million in net sales for 2005.

On the road
Myers Tire Supply is the largest wholesale distributor of tools and equipment for tire, wheel, and allied service needs on passenger, truck, and off-highway vehicles in the US. At 37 distribution branches across the nation, a new regional branch in Brazil, and four international affiliates, the company stocks nearly 10,000 items, including hydraulic lifts, wheel balancers, tire plugs, and repair chemicals.

Myers Tire purchases products from top manufacturers such as Ammco, Champion, Corghi, Ingersoll-Rand, and Ken Tool to ensure quality is delivered to its customers. From the central warehouse in Akron, Ohio, the company’s fleet of trucks keeps a continuous supply of products flowing throughout its massive distribution network.

An essential element of Myers Tire’s success is a focus on delivering personalized service on a local level. The company’s 170 sales representatives introduce customers to the latest tools and technologies and provide training in new product features and applications. The company’s representatives also go the extra mile by teaching the proper use of diagnostic equipment and presenting on-site workshops that demonstrate industry approved techniques for tire repair and under-vehicle service.

In 2005, the company took its customer service on the road, traveling across North America in a Roadshow Truck. The traveling trade show enabled Myers to demonstrate its product portfolio, interact with customers, and offer ideas to help customers make their operations more productive.

Said Orr, “In short, satisfied customers are loyal customers, which brings mutually beneficial value and builds a strong foundation for growth.”

Re-organized and empowered
To provide quality service, quality people are essential, and in 2005, organizational development was critical in Myers’ successful growth. “Organizational development means having the right people in the right positions, implementing succession planning at all levels, maintaining ongoing professional development, reinforcing employee accountability, and rewarding performance,” Orr said. “Our business grows in part because we emphasize each of these areas across our segments.”

In 2005, one of the biggest changes at Myers was the re-organization of its businesses into four manufacturing segments and the distribution division. According to Orr, the segments continue to operate with the entrepreneurial spirit in which they are all rooted, but one of the primary objectives is to achieve the benefits of synergies presented between brands to maximize growth potential.

To accomplish this task, the company named managing directors for each segment charged with devising an operating strategy for their respective divisions. The managing directors work with general managers and their management teams to develop new products, maximize cost controls, determine which customers and markets to emphasize, and build stronger brands.

The re-organization also helps to foster an environment that empowers employees to do what they believe is best for the business and the customer. “Our strategic business evolution process provides a framework for employees to take action and produce improvements,” Orr said. “It also provides a framework for a more performance-based organization.”

The CEO also described how the re-organization is changing the company’s culture: “Our people at every level are being given information and the tools to better understand their impact on financial performance and how they can collaborate more effectively within their respective businesses and roles to contribute to our success.”

Driving down costs
Cost control, another of the five key principles of Myers’ strategic business evolution process, helped Myers achieve record results in 2005. “Myers Industries’ focus in the cost control arena is simple: minimize expenses, maximize cash flow—essentially, spend the company’s money as cautiously as we spend our own,” Orr said.
To drive down operating costs and improve efficiency and equipment utilization, the company consolidated two distribution branches into a larger, more streamlined facility. The company was also able to close a sales office in Central America by merging its activities into domestic sales.

And the organization’s cost control efforts yielded substantial results: in 2005, selling and administrative expenses decreased to 21.2% of net sales compared to 23.4% in 2004, and the company was able to recover an estimated 75% of the $48 million increase in raw material costs. According to the chief executive, such efforts are helping Myers build momentum for sustained future growth.

“Our segments and brands are under continuous review for strategic fit and growth potential,” Orr said. “This rigorous review process is guided by the five operating principles and is central to our strategic business evolution, which will strengthen our innovation, enhance leadership in the markets we serve, build strong customer relationships, and position us to grow on a sustainable basis.”