By Heather Douglas
“We find ourselves in a bewildering world. We want to make sense of what we see around us and to ask: What is the nature of the universe? What is our place in it and where did it and we come from? Why is it the way it is?” Stephen Hawking, (1942 -), English theoretical physicist, cosmologist, and author of A Brief History of Time (published 1996).
Maxquip Inc. was founded out of a single warehouse on July 15, 2002 by a number of talented, well-respected entrepreneurs, in the industrial parts distribution business who wanted to control their own destinies, make sense of their personal universes, and establish a company that would challenge the way things had been done in the past.
These entrepreneurs, formerly with Western Rock Bit/Western Industrial Products – Budi Setiawan (CEO and chairman of the board), Mel Young (first president) and Vice Presidents Willie Stephen, Wayne Gustafson, Bruce Osborne, and Tom Cheret – had a vision to stock their warehouse with a great selection of parts, components, and integrated systems, hire knowledgeable employees who could offer the right solutions to clients, have the ability to service everything they sold, provide a fast-turnaround (including same-day-shipping), build great relationships with suppliers so they could be the first to stock the new product lines, and be innovative (able to customize applications, integrate systems, and introduce in-house technologies). A tall order but one the six agreed was worth doing.
The group were all veterans of the propane equipment business, had a 20-year history of successfully working together in an industry they knew and enjoyed, and, like Stephen Hawking, they wanted to improve the parts distribution business by capitalizing on new technologies and advanced management theories they thought the industry was primed for.
Team Practices Principles of Great Leadership
The founding shareholders understood the importance of agreeing on a vision, mission, core values, and business plan before they opened their warehouse door to the first customers.
- Vision – will be global value-added supplier of energy-related parts and equipment focused on being the partner of choice for customers, shareholders, and suppliers;
- Mission – maintain focus and energy to provide customer-innovative solutions; we will strive to be the best by continuously investing in our people; and
- Core values — committed to providing innovative and creative solutions for customers, committed to honesty and integrity in everything we do, will respect everyone, will create a working environment that foster positive, motivated employees, and we are committed to the safety of people and the environment.
According to Cameron Stewart, Maxquip’s current president, the founding shareholders were astute to lay such a solid framework. “They discussed their personal convictions, debated how they would negotiate tough discussions, clarified how they would set expectations, and considered how they would deal with anyone who couldn’t or wouldn’t contribute at a top level to the company’s purpose and mission. I have great admiration for their passion, how they wanted to be authentic, and how committed each one was to always staying at the forefront of change.”
On July 15, 2002 Maxquip opened its doors for business. The company’s ethos attracted like-minded employees and soon, the warehouse was humming as equipment parts and suppliers arrived and were quickly shipped to customers, and the company thrived as its reputation grew.
“It’s been my experience that great leaders determine a company’s success or failure,” says Stewart, who joined Maxquip in January, 2007. “It’s not the size of the build, how cool the products and services are, or even if the company offers the best equipment in the world. What propels and sustains a great organization is its diverse team of talented, motivated employees. The founders achieved that and more.”
Expansion Follows Strict Criteria
Stewart is not surprised by Maxquip’s strategic and steady growth across Canada. “The management team was trained to consider any and all positive and negative views; they evaluate the rights of everyone involved, and make decision using an ethical process. I’m impressed how they hold each other and every team member accountable. Customers recognize that and trust us to keep our commitments.”
In February, 2006 Maxquip opened its first satellite warehouse in Edmonton and then in August it entered the alternative fuel equipment distribution market. The following July, the company opened its Surrey, BC warehouse followed by the Saskatoon warehouse July, 2008.
Maxquip decided to expand into Eastern Canada and opened its Montreal, QC warehouse in February, 2010. Next, it purchased Galaxy Gas Products in February, 2014, giving it a warehouse and sales presence in Oakville, ON. Galaxy had a well-deserved, excellent reputation as a propane equipment distributor for 25 years and Maxquip was pleased with its acquisition.
“As the company grew, the management team and employees did not want to lose their entrepreneurial corporate culture,” Stewart notes. “There’s a big difference between demanding others adopt your way of doing business and teaching them how to find success in the new ethos. Our leaders found satisfaction in not just teaching new employees but also in mentoring them and showing them how they can become more than they believed they were capable of.”
One of Maxquip’s axioms is, “Our leaders have a strong drive to invest in people, not for the return it will give them, but for the rewards it will bring to people personally.”
In December, 2014 Maxquip started marketing and supporting its line of telemetry solutions, as an industry leader in remote automated communications, data measurement, and data monitoring. Two years later, the company opened a warehouse in Winnipeg, MB.
“We believe the Maxquip value proposition speaks to our customers,” Stewart adds. “We are a growing company and we’re continually expanding our horizons to meet customer needs across Canada. Today, we are a leading distributor of energy-related equipment and serve a diverse range of industries including the agricultural, alternative fuels, heating, outdoor living, and oil and gas markets.”
Maxquip has opened distribution centres in Surrey, Calgary, Edmonton, Saskatoon, Winnipeg, Oakville, and Boucherville, QC.
“Our distribution centers operate as autonomous business units,” Stewart says. “We strive to train and empower our team members to make decisions that support our customers’ requirements locally. Everyone has access to information about Maxquip’s entire inventory so they can draw on inventory from each other to support their customers as required.”
There’s no doubt the vision, mission, and values the founders negotiated have created an excellent, trustworthy company. They succeeded, probably beyond their wildest imaginations, in aligning their vision with the needs and aspirations of their clients. Employees have been encouraged, considered, and everyone has learned from the occasional constructive criticism, during the past 15 years. The leaders have stimulated employees to communicate honestly and directly in a professional manner.
“Everyone at Maxquip is committed to doing whatever must be done to achieve the best results, no matter how difficult,” reports Stewart. “I’m proud of our track record in coaching, developing, and supporting our team members across the country.”
At Maxquip, employees like to remind themselves that “everyone is in sales” – because everything they do is about helping the customer. No matter what their role is, everyone is hands-on and they’ll do what it takes to directly or indirectly support our customers. It’s not uncommon to find our team in the field, at any time of day, troubleshooting and helping our customers overcome emergencies.
We salute the founders as well as past and current employees at Maxquip. They found themselves wanting to control their own destinies, make sense of their personal universes, and establish a company that would challenge the way things had been done in the past. On July 15, 2017 the company proudly celebrated its 15th anniversary.
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