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Today, SASCO only one of three such companies in Texas, is located off W.W.
White Road, very close to the San Antonio Livestock Show and Rodeo in an
80,000 square foot warehouse on 20 acres. They distribute over 700 products
to more than 500 customers in Texas and parts of Louisiana, Arkansas and
Oklahoma and is one of the largest distributors in the Southwest.
Their products are a myriad of fabricated steel which varies from foundation
materials to nails to fencing products. Their clientele is 40% construction and
60% agricultural. They distribute a lion's share of the fencing material used by
Texas farmers and ranchers, including Bekaert Gaucho, XFENCE and Red
Brand to name a few.
"SASCO services the entire south central region: Del Rio up to Abilene and
across to Dallas. south to Houston, around the Texas coast and the Rio Grande
Valley, plus everything in between," explains Gary Kothmann, President.
Their fleet of semi's carry the products across the southwest to reach their
customer base, which is mainly small rural lumberyards and farm and ranch
supply businesses.
Neely has never wavered from his commitment to own his own business,
provide quick and uncompromising service, as well as competitive prices and
while many businesses have turned to telecommunications, as a way to
remain in contact, not SASCO. Taking care of the customer is still paramount.
Phones are still answered in person and personal sales visits are still done.
In addition, Neely has made it a part of the company's mission statement to help
their customers grow, prosper and become successful. He has forged strong
dependable relationships with his customers as their supplier.
In addition, Neely remains just as committed to his employees and they in turn
are committed to him. He has always been open about the company with his
employees and when it makes money, he sees to it that they do also.
SASCO annually exceeds $35 million in sales, and his first three employees
as well as most of his first customers and suppliers, are still a part of
Neely's company.
Neely has be recornized by the Texas A&M Mays School of Business with the
outstanding Alumni Award in 2005 and he is an inaugural member of the Aggie
1000, whichrecognizes the 100 fastest growing Aggie-led businesses in the
world. The company has received recognition from Inc. Magazine's Top 500;
San Antonio's Fastest Growth Companies in 1995 - 2008 and in 1997, Ernst
and Young LLP awarded Neely Entrepreneur for the year honor.
Upon receiving the Outstanding Alimni Award Neely said his philosophies of
bringing passionto his work and integrity to his dealings, in addition to the
support of family and valuable employees had provided for SASCO's success.
SASCO also makes it a point to share their success within the community and
is annually one of the San Antonio Livestock Exposition's (S.A.L.E.) Top Ten
Buyers at the Jr. Livestock Auction. In addition SASCO staff members are
involved in several S.A.L.E. committees.
"We are pleased to be able to contribute to such an important program as
S.A.L.E. that benefits Texas Youth who are involved in agriculture," says
Neely. But all of this did not come easy or without sacrifice for Neely, his
wife Trisha and their three children. The building years were difficult, but
it's a lesson in hard work and perseverance.
Neely has not strayed far from his roots. He grew up on the south side of
San Antonio and gives his father credit for teaching him the value of hard
work and the character trait of honesty. His dad owned a service station
and often worked extra jobs to provide for his family. Neely worked after
school, weekends and summers at the station.
He graduated from Texas A&M in 1963 with a degree in marketing. His first
job was as a sales representative for Sinclair Refining Co. and after six
years there he would join Hertz Corporation and work in the truck leasing
department. Then in 1970 he joined Knowlton's Creamery as retail sales
manager and would advance to Vice President/General Manager during his
ten years there. Neely acknowledges that he started at the bottom and
worked his way to top and in between developed his skills in marketing and
distribution and gained invaluable management experience.
But Neely's goal was to own his own business. In his mind it had to be
affordable, with a great one-location growth potential. He came across an
ad in the newspaper for a small wholesale building supplies company.
That company was San Antonio Steel Company and at the time. it was a
two-man operation located in a small warehouse. The company bought large
quantities of nails and wire from wholesalers, broke the order down and
resold them to construction companies and lumberyards. The inventory
included $350,000 in sales, a warehouse and one used bobtail truck.
On December 28, 1979, Neely became the owner, after scraping together
enough money from a small income tax return, $2,000 in cash, savings from
two rent houses, money from his profit sharing plan and a small loan from his
family. He assumed the former owner's Small Business Administration loan
and contracts with suppliers.
The next 13 years were a roller coaster ride for he and his family.
He left Knowlton's for a few months, only to have them want him back and
agree that he could continue to own his business. For the next two years,
Neely started his day early at SASCO , where he'd help load trucks and talk
to customers by phone. Then at 8:00 a.m. he was at Knowlton's working as
the General Manager. Then after 6:00 p.m. he was back at SASCO meeting
with suppliers and putting up merchandise.
By 1982, SASCO had revenues of almost $1 million, and in January 1983,
he resigned from Knowlton's. SASCO was serving independent construction
retailers, family-owned lumberyards, farm and ranch retailers and building
supply centers throughout South and Central Texas. Neely finally drew his
first salary at the end of 1983.
But the company didn't always have the cash flow it needed and it was
difficult to find a bank to finance a growing company. He and his family then
decided to sell their house, and use the money for the business. Their decision
paid off as sales increased by $2 million in 1984.
The company would move from the small warehouse to a 33,000 square foot
warehouse. Neely has been quoted as saying that was when he knew the
business was going to make it.
The company contiued to grow and then came the Tax Reform Act of 1986
followed by the depressed oil and real estate industries fo late '80's. Sales
began to slow down. Feeling responsible for his small number of employees,
Neely would struggle with what to do. In 1991, he went to his wife and kids
and once again they agreed to sell their current home in order to keep the
company running.
That as they say is history! By the end of 1991, sales had reached $6 million
and by 1997, $20 million and the past year sales exceeded $35 million.
The president of the company Kothmann, joined Neely in 1982 and was
SASCO's second employee.
"I look forward to coming to work here every day. Chaz has been wonderful
to work for and he has always been very focused where our customers are
concerned. He has worked very hard to build this company and it has been a
wonderful opportunity," said Kothmann.
The first employee, Dayle Rihn, who started in 1981 is also still with the
company. He worked his way ti district manager and held that position for 15
years. He is now the customer service manager for the company.
Gary R. Craig, who was a District Manager, Sales Manager, and now
SASCO's Marketing Manager, first worked for Neely in the 1970's at Knowltons.
He joined Neely at SASCO in 1983.
"SASCO is a great company, because of Chaz Neely. He is very accessible,
if you need a answer you don't have to wait until someone gets back to you
from some other city. His office is next door. Chaz treats us as equals and
gives us his trust. It has been a great place to work," says Craig.
As our world becomes more globalized and coporate America takes over the
family business, success stories like Chaz Neely and SASCO are fewer and
fewer. His success is our success. With companies such as SASCO still
available to provide materials for the shrinking agricultural community we can
be inspired by their success and comforted by the fact that they have in some
small way shared similar experiences with us, and perhaps understand the
struggles faced by many of their customers.
FENCING TIPS
Building and fixing fences has been a major chore on farms and ranches
since the late 1800's when barbwire was introduced and landowners began
establishing boundaries using fences.
Today is is also a major expense as the price of steel and related products has
continued to escalate.
SASCO carries a number of brands of barbwire from the traditional 12.5 ga.
low carbon to the 15 1/2 and 14 ga. high tensile barb wires. They also carry
the low carbon field fences and state of the art high tensile fences coming
from New Zealand and Bekaert Corp.
"Today producers can build a fence that can last 30-40 years, rather than 10
to 12 years as in the past. The labor remains the same regardless of which
materials you use, but the life of the fences will more than pay for the higher
costs of materials based on today's rates and who knows how these
products are going to be in 10 years," says Gary R. Craig, SASCO's
Marketing Manager.
The high tensile wires offer a number of advantages such as easier handling,
new and improved knots, increased galvanization and higher carbon steel.
"For over 125 years, most fencing materials were considered low carbon
class 1fencing. This had a breaking strength of 500 lbs. and a life of 5-12
years. Today the high tensile, class 3 wire has three times the strength and
three times the life expectancy. Because the high tensile wires are so much
stronger, T-post can be placed 20 feet apart rather than 10-12 feet as with
the low carbon wire. When you add the extended lifetime of the fence to the
equation, the advances are a real savings for the landowner," explains Craig,
adding the the high tensile wires will not sag either.
Craig also adds that the Sta-Tite Bezinal fences have a coating of 95% zinc
and a 5% aluminum mixture that will give you longer life. Sta-Tite Bezinal is
manufactured exclusively for San Antonio Steel Company. Bekaert can then
paint Bezinal coated wire in either green or black for a great looking fence that
will again give you added years to the product.
Another major improvement in fencing concerns the knots found on woven wire.
Today's knots are designed for additional strength.
The "Fixed Knot" is a seprate piece of wire tightly wrapped around the line wire
and stay wire. It is very resistant to an animal's touch.
A "X" knot uses separate piece of wire to attach the line wire to the solid stay
wire. It is also strong and is popular with horse owners because this knot is
forged and very smooth to the animal's touch.
A "hinge joint" knot is formed by wrapping the vertical stay wire pieces
around the line wire at each intersection. This design can absorb animal
impact and is considered the economical knot choice.
SASCO is the sole distributor of the "XFENCE" in the United States. Like many
of the high tensile fences "XFENCE" was developed in New Zealand.
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