Issue link: https://read.dmtmag.com/i/241540
My Story continued from page 35 including South East Asia, Europe, the Middle East, Africa and the USA. The company's American customers were Regal, Jackson Tractor Parts (known today as Heavyquip), IPD, Union Tractor, FP Smith, Letts Industries (known today as Trek), Costex, Machinery Parts, Paramount Supply, Surplus Tractor Parts and several others. A few of these names were then new to the industry; others saw opportunities for expansion. On the direct distribution side, ESP was the first Italian company to establish joint venture distribution centres with local partners in the USA, Canada, Greece, Germany, Singapore, South Africa and Australia. By acquisition, I created ESP International in 1973, an export company in New Jersey specialising in the supply of American-made parts to the mining industry. The company still exists today owned by its first general manager. In 1975 I was fortunate enough to secure an order for $1,000,000 of gasket kits and components for Caterpillar engines. The only supplier at that time was Philips Gaskets in California. Their pricing policy was very rigid, so much so that they were not prepared to make any concession on prices for such an important order. Consequently, I decided to go into the gasket kits business, and established in New Jersey the first competitor to Philips, then known as US Gasket Co. (USG). USG began its business activities by fulfilling the above order, which Philips did not accept and then trading in competition with Philips. The existence of a second gasket kits supplier created competition to Philips Gaskets for the first time. Two or three years later, USG was sold to Philips, mainly because they wanted to eliminate competition and regain their monopoly and pricing policy. Nowadays there are more than 10 companies in the aftermarket gasket kits business. In the mid-eighties, Turkey came into the picture. A number of companies on the manufacturing side, as well as some involved in distribution and export, started to compete with Italian-made products. As a direct result of advanced manufacturing technology in Italy, it had become very difficult to produce parts in small batches, whereas in Turkey it was still possible. Even Italian companies had no option but to rely on Turkey for the supply of certain metal products. Turkey took over from the Italy by producing mainly small to medium size metal parts, as well as a wide range of engine components. Turkish products continue to be an integral part of the industry today. 36 In the mid-eighties my wife and I decided to return to England. We wanted our daughter, who was eight at the time, to be brought up and educated in England. ESP continued its activities under the management of a team of local individuals. I visited the company periodically attending board meetings as Chairman. Whilst back in England, I established a new company called Equitrade, which traded in Caterpillar spare parts not produced in Italy but available from sources elsewhere. The company also promoted the sale of Italian products in specific areas or to specific customers. Sometime in 1989 I was contacted by the late Leo Smith of Toronto, Canada, who asked me whether I was interested in selling the ESP companies. I answered, "everything in life is saleable, depending on the price;" he replied, "you name the price." Two weeks later, I did name the price, which he accepted on the telephone. In December 1989, at the age of 50, I sold ESP Italiana and Equitrade. I signed a three year non-competition undertaking and found myself free and outside the industry. Freedom is wonderful, but, like everything else in life, it has its price. After years of seeing your capital resting on shelves, suddenly it melts into cash and your bank account shows credit balance of seven or eight figures. No more payables, receivables, personnel problems, business travel; no more rushing to gate numbers at airports and meeting with bank managers you really do not like but have to be nice to them. You wake in the morning with nowhere to go. The highlight of the day is accompanying your spouse to the supermarket, where you find yourself pushing the trolley. My world became boring and lonely because my main interest and hobby was in the world of spare parts and I was no longer part of it. Having free capital at your disposal makes you more careful how you spend it. Whilst working, your bank account is replenished every month, but when freedom strikes you watch your balance slowly deplete. You become more anxious and controlling about the cost of your life style. At this stage I started looking for 'investments' that would occupy me in a new world I did not know before. I had to respect my undertaking for the next three years, but I still had an urge to find something to do. It is surprising how many distant relatives and friends approach you encouraging you to invest in their 'so IDA UNIVERSAL January-February 2014