Metal and mettle: secrets to the unstoppable progress of AIH.

• Author: Anderson, Tasha
• Position: Alaska Industrial Hardware - Financial report

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In many ways, the history of Alaska Industrial Hardware is the history of Alaska: AIH saw its humble beginning in 1959, the same year that Alaska achieved statehood. Since that time, both AIH and Alaska have made incredible progress as they have managed difficult terrain, trying weather, the busts of poor economies, and the booms of game-changing infrastructure. AIH began in a small quonset hut, where original owner James Thompson sold re-packaged surplus nuts and bolts. As of April this year, AIH opened a 53,000 square-foot store on the Old Seward Highway in Anchorage, bringing its total number of Alaska locations to eight, including stores in Eagle River, Wasilla, Kenai, Fairbanks and Juneau, and brought in revenue of $52.5 million, ranking at No. 44 in Alaska Business Monthly's Annual Top 49ers.

A Turbulent History

During more than 50 years of operation, AIH has managed to turn adversity into opportunity. In March 1964, Alaska was devastated by the Good Friday Earthquake. AIH was quick to take the opportunity to supply contractors and homeowners with the necessary tools and materials to construct businesses and homes, simultaneously stimulating an Alaska-born company and the Alaskan community. A decade later in 1974, construction began on the trans Alaska pipeline system, a massive project that, as President Mike Kangas said in his November 2011 address to Specialty Tools and Fasteners Distributors Association, "Gave AIH more business than we could handle at the time, and gave us the opportunity to expand through the state."

Shortly thereafter in the 1980's, oil prices dropped to less than $9 a barrel. An oil-dependent Alaska economy fell into recession and AIH struggled to stay afloat. In 1989, the Exxon Valdez ran aground in Prince William Sound, flooding the area with 250,000 barrels of oil. Much like its experience with the earthquake 25 years prior, AIH was able to work vigorously with the state to rebuild and restore--only this time it was the Alaska coastline instead of its infrastructure.

AIH and the Community

Today, AIH is still going strong, which Kangas says is due to the support of the Alaskan community. "I think the community embraced us over the 54 years we've been in business. We feel we have a strong reputation for taking care of our customers' needs--and at the end of the day I think most people are happy with the goods and services that come from AIH. We owe a lot of our success to Alaska and...