By Jim Stavis

It was more than 42 years ago when I started my first automotive aftermarket business called Pace Setter Industries. It grew to become the largest muffler manufacturer west of the Mississippi. In addition to business concepts, the one thing I had to become knowledgeable with was steel. We had bought an incredible amount of tubing, aluminized steel and steel coils of all varieties. I found myself frustrated with the vendors on the supply side of steel distribution. To fulfill all of our processes, we needed more than a dozen different types of steel vendors. Since we ran a production line, getting just-in-time vendors was critical to our success.

After 16 years in business, I eventually sold my interest in the muffler company and joined Doug Carpenter, who was a close vendor and friend. Together, we formed Paragon Steel in 1988 in Long Beach. The lessons I learned in my prior business in meeting the needs of manufacturing became the blueprint for our new company. Our sole focus was to provide higher levels of quality and service to our customers. When customers would ask what we could provide, we would respond with, “Whatever you need.” We broke the barrier of specialization. For years, steel distributors would only carry one type of commodity, such as structural shapes, or plates, or flat rolled or stainless and aluminum products. At Paragon Steel, we can provide any product, in any size or specification. Our boundaries are endless. There was a time when steel distributors dictated to their customers when deliveries could be made or how many pieces were in a bundle of steel. We looked at that as an old paradigm. Why not provide delivery when the customer wanted it in the quantities they desired? It sounds simple today, but back in 1988, it was revolutionary thinking.

So now, some 26 years later, we are still evolving. Customer needs have certainly changed. Customers now have technology at their disposal to source online, send out requisitions via e-mail and do not require the face-to-face contact that used to be a fundamental part of developing relationships. As a vendor, it is much harder to foster those relationships, and we find that it is still a vital part of business. At Paragon Steel, we view ourselves as an extension of a customer’s purchasing department. If we cannot provide value, then there really would be no reason for us to exist, let alone prosper.

So enough about the past…what about the future? We see a changing landscape. The continuing trend of mergers and consolidation with steel service centers will make companies like ours more unique and special. Bigger companies cannot shift in and out of markets as we can. They become too structured and bureaucratic to provide the levels of service that customers now demand. There is no going back on that. And even though communication has changed and markets have changed, and continue to change, it still boils down to people doing business with people they can trust. We welcome the opportunity to earn yours.