Metal benders, a local success story

YAKIMA -- In 1991, Steve Menard almost lost his business.

In trying to build a welding and metal fabrication business, Metal Benders Inc. made many rookie mistakes.

It was undercapitalized. There was a lack of knowledge about the company's overhead. There was too much focus on the craft and not enough on the business management.

"Being a welder and being a businessman are two different things," Menard said.

The result of those mistakes resulted in the company owing more than $420,000 to vendors and in business loans. And no bank was willing to provide financing to bail them out.

More than 17 years later, Menard leads a multi-million dollar company that has built a loyal base of customers. The company, which specializes in large-scale government and industrial projects, provides construction, electrical, metal fabrication and heating, ventilation and air conditioning services.

The company, at 2016 Fruitvale Blvd., has contributed to the construction of big projects such as the Sound Transit light rail system in King County and Safeco Field in Seattle.

Such projects account for about 70 percent of Metal Benders' business.

The company projects 2008 revenues to reach the $12 million to $15 million range, well above the $8.64 million the company made a year ago.

Recently, the Business and Economic Development Center at the University of Washington chose Metal Benders for this year's Emerging Business Award.

The award recognizes a minority-owned business (Menard, 61, is part African-American) that shows a history of growing revenues, development of superior management and contribution to the local community.

The company is the 25th largest minority-owned company in the state.

"(Metal Benders) is the kind of company that we should be proud of -- one that (took) a risk, that overcame the risk, that treats their people well and makes contributions to the community," said David McFadden, president of New Vision-Yakima County Development Association, the county's economic development arm.

After he was laid off from his welding job at Hanford in 1982, Menard ran a welding business out of his garage. The company, Menard's Welding, provided welding services for projects such as the Tieton Irrigation District.

In 1988, he was approached by then-partner Jim Bishop to start Metal Benders.

Three years later, they parted ways, with Menard buying out Bishop's share of the company.

With the company hundreds of thousands of dollars in debt and no additional bank financing in sight, Menard decided to work on projects by paying vendors fully with cash. That method helped the company pay off its debts within a year.

Menard began his niche as a government contractor in 1996 when he entered the 8(a) certification program, a nine-year national program of the Small Business Association that was created to help minority-owned small businesses get government contracts.

As part of the program, Menard attended classes on marketing, project management and other business topics at universities nationwide. He also worked with an SBA agent in Seattle who regulated the contracts the company could get.

Menard learned, however, that participation in the program alone would not get government agencies knocking at his door.

"I realized that I had to have something to set myself apart," Menard said. "I had to be direct, be honest and have integrity."

It's a lesson that many companies didn't learn when trying to win government contracts, said Erin Nielsen, program manager of the Washington State Procurement Technical Center in Everett, Wash.

The center nominated Metal Benders for the Emerging Business Award.

Businesses either make the mistake of trying to apply to work at every aspect of a big project or give up on the long bidding process and heavy paperwork that come with being a government contractor.

Metal Benders, and Menard, did not make either mistake, Nielsen said.

Metal Benders' projects are focused. Past projects include installation of a heating, ventilation and air conditioning system and electrical work at the McChord Air Force Base in Lakewood, Wash., and installing the handrails along Sound Transit's light rail system in King County.

"He was honest with himself on what he could do well," Nielsen said.

Even with millions of dollars in revenue, Menard hasn't forgotten where he came from: a poor Yakima neighborhood.

To help others who face similar challenges, the company funds four-year scholarships for four students who attended one of the same schools as Menard (Barge-Lincoln Elementary, Washington Middle School and Davis High School). The scholarships are $500 annually, or $2,000 over the four-year period.

Menard hires high school students for part-time jobs. Once they're finished with school, he offers apprenticeships with the company.

One of Menard's priorities is providing family-wage jobs for his employees. An electrician, for example, earns $33 per hour plus benefits, including health care for the entire family.

Menard says his employees and the other company managers play a big role in the success of the company.

"Without those people, I'm as dumb as two rocks," he said.

That attitude impressed Michael Verchot, director of UW's Business and Economic Development Center .

"It speaks to the company's belief that if the community is better off, then we're all better off," he said.

* Mai Hoang can be reached at 577-7685 or mhoang@yakimaherald.com.

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