The nuts and bolts of a successful company.

• Author: Ribeiro, Ana Gonzalez
• Position: BUILDING ALASKA - Company overview

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Alaska has many great companies helping build the future for Alaskans. One of them is Alaska Industrial Hardware (AIH), which will mark its 50th anniversary. With its half-century history, AIH has proved that a small store with a bare-bones beginnings can grow into a strong and established company with the capability of flourishing and overcoming economic downturns.

Alaska Industrial Hardware beginnings were indeed humble. James Thompson founded it in 1959, in a Quonset hut on the corner of the Seward Highway and Fireweed Lane in Anchorage. Initially, AIH started out with a simple plan: buy surplus nuts and bolts, repackage and sell them. As it turned out, the demand grew so intense that the founder sought to expand on his initial plan. It turned out to be a profitable one. To date, AIH has grown its business to include eight statewide locations that offer a complete selection of hand and power tools, builder hardware, contractor and industrial supplies, and maintenance and safety products. AIH prides itself with offering quality goods and services at competitive prices. As Mike Kangas, AIH CEO and general manager says, "All of our efforts and resources are committed entirely to the state of Alaska with a $15 million, on-hand inventory. With the short building season, delays cost money and our customers know, expect and appreciate that they can get it the same day, any day at AIH--something no one else in the state can boast. AIH is an Alaska company employing Alaskans with all profits staying in Alaska."

EMPLOYEES MAKE THE DIFFERENCE

The company attributes much of its success to its employees. AIH's 230 employees are considered the company's No. 1 asset and its backbone. Employees are rewarded through the ESOP (employee stock ownership) Program. This program puts the burden on everyone to watch the bottom line, not just management. By allowing ownership of company shares, employees feel part of the company by sharing in its profits.

AIH has had its share of ups and downs. During the great earthquake of 1964, the company suffered many losses, as did all of Alaska. Thanks to the resilience of its workers and the surge in the demand for construction supplies, the company was able to make a positive turnaround. Kangas recalls, "They were selling nuts and bolts by the bucket as fast as they were scooped up off the floor during the cleaning of our store."

In 1974, AIH saw another increase in growth with the construction of...