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Success Tactics from High Growth Automation Distributor

Gross Automation has an impressive track record with sales growth of over 32 percent since 2006, leading to recognition as one of the region’s “Fastest Growing Firms” in 2009 by the Milwaukee Business Journal.

Bob Gross (center) receives award from Mark Kass, Milwaukee Business Journal Editor and Karin Gale of Schenck Business Solutions

Gross Automation is located in Brookfield, Wisconsin, 90 miles north of Chicago; the company sells and installs a number of control and automation products with ABB products being one of their flagship lines. I talked with Bob Gross founder of Gross Automation to learn about the company and his thoughts on the industry.

Culturally Refined Geek!

Bob is a person of many talents and interests.

As I toured the Gross Automation building, I was surprised to see a beautiful grand piano in his office. Bob proceeded to “perform” for me. He developed the skills of a concert pianist and used his musical talents playing at restaurants, pizza parlors, weddings, and other venues to pay his way through Marquette University earning a degree in electrical engineering. His other interests include airplane pilot, Boy Scouts of America leader, Lions Club, Kiwanis, and choir director at his church.

Bob was an engineering co-op student at Eaton Electrical and started his career as an engineer with Westinghouse. Other work experience includes Allen-Bradley, and working for an automation distributor. His experience includes application engineering, technical instructor, and sales engineer.

Bob mentioned that a high school guidance counselor suggested he should become a farmer. Maybe the guidance counselor was close to the mark because farmers are entrepreneurs taking risks and growing things. This is what Bob Gross has been doing for 24 years.

Bob loves technology and states “I am proud to be a technical geek!”

Company

Bob started his business in 1986 selling RFID radio tags, and a few other products. Today the company is a high tech electrical distributor, and master distribution company providing automation controls and services to end users, system integrators, and original equipment manufacturers (OEMs). The company offers a wide variety of products including controls, circuit breakers, contactors, disconnect switches, transformers, drives, fuses, sensors, PLCs, process control systems, industrial modems, safety systems, enclosures, and switchgear.

Bob strives to be in the top 10 distributors for suppliers they represent and noted this also takes commitment from the supplier to provide support and training. Gross Automation has received awards from ABB, illustrating this commitment. Awards include ABB Process Automation's Top Sales Partner for 2006 and 2008, ABB Process Automation's Gold Partner for 2005-2007, ABB Process Automation's Million Dollar Platinum Partner Award for 2008.

The company has a modest UL508 panel shop and contract manufacturing operation to meet the demands of certain customers. Five years ago, sales were more than 95% products and now it is about 70% product with the balance of value added services. I have seen this at a number of successful distributors in the last few years as customers demand value added services from distributors.

Last year the company completed their largest project for a manufacturer of doors. The project started with the retrofit of a 30 axis CNC machine for making doors. Gross Automation engineered the motion control system and installed new drives and associated controls. In addition, they designed and wrote software to implement a make-to-order system which interfaces to the customers Oracle database.

Bob talked a great deal about listening to customers and their problems to deliver the right solutions and find opportunities. Bob is very entrepreneurial. As a sales person, he listened to a problem at the Kohler Company that led to Gross Automation becoming the authorized repair center for Kohler hot tubs.

Thoughts from Bob Gross

Bob and I discussed a number of things that are worth noting.

Team - Bob believes their success is based on having a good team of people that are trained and motivated. He advises hiring the right people and taking care of them, like hosting monthly fun activities. This theme is evident in the Gross Automation break room that features a pin ball machine, entertainment center, and pool table. They just started bringing in a massage therapist once a month for employees.

Training - The Company has regular training for employees to maintain strong product knowledge and technical expertise. The best suppliers come and train distributor staff.

Local Presence – Customers like dealing with a locally owned company that is there to support them and is part of the community. A number of Gross Automation’s competitors were bought by out-of-state companies and this has subsequently helped them increase sales.

Value - The economic downturn has motivated many users to look for better value when buying automation and control products rather than simply buying what they have in the past.

Information Integration - Bob and David Jenson, his chief engineer, noted one big change over the last 5 years is that a high tech distributor must meet the needs of control engineers and IT people. These people are now cooperatively working together to improve the overall efficiency of production. David noted that the concept of “sensor to board room” is a being put into practice and requires the “knitting” of real-time information into the corporate information systems.

Listen - Bob’s advice to be a successful distributor is to listen, understand what customers want, deliver on promises, provide service and maintain a positive attitude.

Flexibility - Bob also noted that flexibility enables an organization to adjust to changes and take advantage of opportunities quickly.

Diversity - Bob noted that diversity has helped grow the company in a tough economy and stated, “I have never seen as many opportunities as I see now.” The company sells into both the discrete and process industries.

My Final Thoughts

I know from experience that a good high tech automation distributor is worth their weight in gold. A good automation distributor delivers products, support, and knowhow that can make a project run more effectively and efficiently.

Bob has strong opinions but he is the first to admit he does not have all the answers and is always learning.

Bob has been dedicated to the Boy Scouts of America for many years and is currently a Unit Commissioner. After he learned I was a scout leader for seven years he is trying to recruit me to be a scout advisor.

More Information: www.grossautomation.com

Automation.com Real-time Information for the Automation Professional May. 26, 2012

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