Jim Resch tells Michelle Rivera that business is booming, even in an industry slowdown.

Gulfeagle Supply has seen a slowdown in the industry as of late, but the full line distributor of residential and commercial roofing and building products is seeing a tremendous boom in business. A large part of that can be attributed to the company’s recent acquisition in 2004, which more than doubled its size.

Tampa, Fla.-headquartered Gulfeagle Supply acquired JEH/Eagle Supply, a combination of two companies, Eagle Supply and JEH. The acquisition brought Gulfeagle Supply into several new markets. “I had known about Eagle Supply for years because they were our competitors, and I thought of the company highly,” Resch said. “They were right in our backyard (in Florida) so that gave us the opportunity to enter into new markets we hadn’t been in before in the state, giving us much greater penetration.”

Jim Resch

Gulfeagle also expanded its business outside the state of Florida due to JEH having a strong presence in Texas, Colorado, and the Midwest. This broadened the company’s base out of state as it entered into new markets, diversifying business. Resch admits he spends most of his time on acquisitions and growing the company. “We’re committed to ongoing growth, and even though we’re relatively slow in Florida at the moment, there are other markets that are more vibrant,” he said.

“The Florida market has been slow due to the previous heavy hurricane seasons. Just about everything has been re-roofed,” said Resch. “But it’s temporary. The commercial areas are still going strong, and we’re seeking growth and opportunity in those areas and other markets.”

Blending cultures
The recent acquisition led to a blending of cultures, which Resch said was achieved through mentoring and open communication. “At that time, it took energy and effort. The company we acquired had people who were extremely professional and knowledgeable of the industry, so it required less training and more blending,” Resch said.

When looking for potential companies to acquire, Resch said the culture is most important. “When we identify a target, we look at the culture, and how the business is run. We look at their people, the most significant asset to any business. Anyone can go out and buy trucks and put materials in the warehouse, but it’s the people that make the business.”

The company has made a total of 16 acquisitions over the past two decades; according to Resch, Gulfeagle averages about one acquisition every two years. After digesting the 2004 acquisition from an infrastructure standpoint, Resch said the company is now in a position where it can move forward and continue on that trail.

Gulfeagle Supply has more than 50 branches , and Resch said there are still plenty of segments in the market he can fill up with new ones. “We opened two last year, however the opportunity of growing through acquisition is much quicker.”

Resch has been dealing with the slowdown in the industry by remaining cost conscious and monitoring the company’s expenses closely, from resources to assets, and deleting equipment when necessary. In other words, Resch is upgrading the company’s fleet by getting rid of older units. “We’re a lot more efficient in the way we run the business on the equipment and processes side, relying on process improvement. It’s basically been a process of getting skinny.”

Grow your own
Resch places a huge emphasis on employee training, a critical element of the company’s continued success as it grows. Multiple levels of inhouse training programs are provided for employees in all positions.

“We’ve always concentrated our efforts on training, but it has been much stronger in recent years because we’ve come to know the benefits of training our own and getting the right people that have the ability,” Resch said. “It’s up to us to mold them and make them a success.”

The chief executive said “growing his own” is much more advantageous than going out and buying competitors’ employees. “We know what we have. We’re in the position to assess employees over a longer period of time. We know their strengths and weaknesses, and we’re very keen on giving our own people a challenge. Most people want a challenge in life, and if you give them an opportunity, challenge them, and show them how to obtain it, it’s always a homerun,” said Resch.