Reflections from the CEO: What Makes a Company Stand the Test of Time

Celebrating 80 Years of Resilience and Innovation

I have been selling industrial supplies for my entire adult life and have watched businesses succeed and fail. In a world where businesses come and go, it's a remarkable achievement for any company to celebrate 80 years of success - something APG celebrated this past November. 

Longevity is remarkable in and of itself. Consider this: only 12% of companies make it past the 25-year mark, and fewer than 5% reach the impressive milestone of 75 years. In fact, a mere 0.5% of companies ever make it to the century mark. And yet, APG still stands tall, having endured nearly a century of change, challenges, and continuous reinvention.

As we embark on a brand new year, I wanted to take a moment to reflect on what it takes for a company to survive for so long.

Navigating Through Decades of Change

Over the years, we have faced wars, recessions, economic booms, technological shifts, societal changes, and even a global pandemic that brought the world to a standstill. APG survived all of that.

Multiple generations of families have been raised while working for APG, customers have transformed their industries, and new competitors have emerged, yet APG remains a steadfast leader in its field. Don’t get me wrong, we have our challenges, but when you look at this company’s body of work, we have enjoyed success that few companies experience - one that is so rare it is scarcely ever seen.

What Makes an Organization Survive?

So, what sets APG apart? Why does APG last when so many others falter? When you look at the longest lasting companies there are few traits that are shared by all of them, regardless of industry or product.

1. They continue to change.

Just like General Electric (GE) transformed from making lightbulbs to becoming the company we know today. IBM began making computers and is now pioneering AI. APG has embraced change as a constant. Adapting to evolving markets and technologies is a hallmark of enduring companies.

2. They don't follow, they lead.

We can look at our own industry and see examples: Fastenal led the industry in industrial vending and MSC has led the cutting tool industry but started as a machine shop supply company. While everyone else is trying to beat their competitors, companies that last are trying to improve their industry.

3. They remain focused on making it better not bigger.

Often companies will look at their growth as the single measure of success. Unfortunately, its not a great predictor of lasting success. The ones that last focus on impact. They got bigger, much bigger but first they were better.

4. They build great customer experiences.

Not just a great quarter, or a great year. That’s what we do at APG. When you look at the investments made and the focus of our company at its core - we are focused on our customer’s experience.

But I still haven’t answered the question - Why APG?

The Heart of APG's Success - Its People

As I mentioned, I have been selling industrial supplies for my entire adult life - it is all I have ever done. And I can see what has brought APG success. If fact, it is so clear, it screams at you from your first experience.

IT IS OUR PEOPLE, OUR TEAM. 

Now let me be fair. That is a predictable answer. One you would expect me to say, so I will go deeper.

When our customers need us, we are there. We find a way to provide them with what they need. I have seen our people go as far as they can go. When we get frustrated, it is usually on behalf of a customer we are trying to help. APG's employees go above and beyond to meet customer needs, often going to great lengths to ensure satisfaction.

When we are struggling individually, someone helps. I have seen our employees treat each other with respect and concern, extending their camaraderie beyond the workplace. When someone is trying to get something done, we help.

We define ourselves by 2 things here: how we treat customers and how we treat each other. APG defines itself by its commitment to customer service and fostering a supportive, cohesive team.

In conclusion, APG's 80th anniversary isn't just a celebration of the past but a testament to its enduring values and forward-thinking approach. With its people at the core, APG is well-equipped to navigate the future and continue its legacy of success for another 80 years.

Joe Stephens
CEO

About Joe Stephens

Joe Stephens began his career at Fastenal in a series of progressive leadership roles, the most recent being Vice President of the Mid-Western Business Unit. The Central Region was comprised of 200 local warehouses, 1100 employees, a 300,000 sq. ft. automated distribution center, and a fleet of over 500 company owned vehicles. The region saw tremendous growth under Joe’s leadership including a topline CAGR of over 15%. He also held a VP position in the Northeast and various other roles throughout his tenure with the company. In 2016 he left Fastenal to build out a Private Equity backed platform similar to APG.

Most recently, Joe was the President and CEO of Motor City Industrial. MCI was a last mile distributor of industrial supplies including fasteners, hydraulics, and safety products. MCI was PE owned and completed 3 add-on acquisitions. Under Joe’s leadership and in addition to the acquisitions, the company deployed a WMS, a proprietary industrial vending program, a fully integrated operating system, and an industrial E-commerce site. The company was recently sold to AFC Industries, a $650MM distributor where Joe helped with integrating the acquisitions. MCI was a successful outcome for investors and employees alike. The existing team was promoted up though the larger organization in various senior leadership roles and the strategies employed were adopted by the acquirer. He leaves his current role having successfully fulfilled all obligations to employees, investors, and the strategic acquirer.

Joe and his wife (Toni) have 4 adult children and 2 grandchildren. They live in Birmingham, MI and are in the process of setting up a residence in Houston. They are active in their local community serving youth-based philanthropies focused on economic empowerment and poverty alleviation.

Joe received a BBA and MBA from the University of Kansas.