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A Brief History 1990 to Present:
GRK Canada Limited was established in 1990 and
opened its doors for business on January 1 st , 1991. All of
GRK's products were, and still are, screws for various construction and
carpentry applications. At that time GRK had three full time office
employees, one full time and two part time warehouse staff. GRK was
established as a wholly owned subsidiary of Reisser Schraubenwerke GmbH of
Kunzelsau, Germany.
Thunder Bay was chosen as the site of this venture
after careful review of numerous Ontario cities, including Lindsay,
Woodstock and Welland. The geographic location of the city and friendly
attitude displayed by economic development officials were prime reasons
for selecting Thunder Bay. And so the Walther family, consisting of Uli,
Gerda, Mirco and Thorsten, set out for a new future in Canada. It was
Reisser GmbH's goal to establish a foothold in the Canadian market before
spreading to the United States. Strategic planning called for an active
pursuit of end user business, lumberyards and hardware stores.
Unfortunately, many obstacles presented themselves along the way. Canada
proved a difficult sale for GRK's products. Even continued efforts could
not revive lackluster Canadian sales. Still, striving for domestic success
remained a priority at GRK until late 1992. At this point, unexpectedly,
Reisser Schraubenwerke GmbH filed for bankruptcy protection from creditors
and was handed into receivership.
For the fledgling Canadian subsidiary this seemed a
certain death sentence. With money outstanding to its own creditors and
sales slow, GRK seemed destined to follow its parent company into
bankruptcy. The first blow came immediately after news of Reisser's
default had reached Canada. It was at this point that the Royal Bank
called in outstanding balances and imposed an overseer on GRK. Even after
being ordered by federal officials to restore funding, the Royal Bank
called in loans a second time bringing about GRK's certain end, or so it
seemed. ...Shortly thereafter, a Kitchener based company proposed to buy
GRK from its German mother company's receivers. Quickly, details were
explored and an agreement was reached. It was then, that the Kitchener
company's General Manager flew to Germany to sign the necessary documents,
only to refuse signing at the last minute.
After this latest disaster, only one chance remained
a management buyout. With the help of some private investors, GRK was
bought by management, effective January 1 st , 1993. GRK then
began to turn its attention south. Having already gathered first hand
experience and having been rejected in Canada, the United States seemed
worth a try. As we all know, the simplest way to get from A to B is in a
straight line. With this piece of common sense in hand, GRK headed for the
closest American state, Minnesota. Success proved easier to come by in the
United States. Soon a few US customers accounted for the bulk of GRK's
sales. Still, the company was struggling for profitability and remained on
the verge of bankruptcy throughout 1993 and most of 1994.
Following sales to individual customers, GRK
received interest from US based building material wholesalers and actively
pursued this route. Several wholesale partners were signed up during this
time. After booking multi million dollar losses since startup, 1994 proved
to be GRK's break even year. It was also the year GRK hired several new
sales representatives in the US, as well as expanding their Thunder Bay
based workforce. The new sales staff was deployed in Territories in the
New England States and the Central Midwest. GRK now actively called on
prospective customers in most border states. The pattern had become
obvious, virtually all orders, upward of 95%, now came from US based
customers. This pattern still holds true today. GRK now had limited funds
to develop its own product roster. This meant designing and patenting
several new and innovative fasteners. For this information, GRK has
received attention from US based television and print media, as well as
industry associations.
Further advances were made during ensuing years.
Manufacturing partners were added. To this date, GRK products are
manufactured exclusively for GRK or by license from GRK. Products come
from Germany, Switzerland and Taiwan and the USA, depending on product
type. Somewhere down the road, manufacturing may be set up in Thunder Bay.
However, the logistics of such a venture are too massive to undertake at
this time.
Over time, GRK continued to add wholesalers and
other customers in the United States, totaling over fifty large wholesale
partners, most of them with six figure purchase volumes. In addition,
Japan emerged as a new market in 1997. Without a Japanese sales force in
place, Japanese companies began to enquire about GRK products, which they
located on GRK's web site. Currently, GRK has two steady customers in
Japan with six figure sales in that country.
At the same time Canada was at a standstill. The
dollar size of the Canadian market remained the same. Very few inroads
were made in the domestic market. Innovation may simply not sell as well
in Canada as it does elsewhere.
Due to annual growth rates between 20% and 40%, GRK
has been forced to add to its Thunder Bay location in 1997, 1998 and 1999,
with further expansion on the horizon. In 1998, GRK also opened a foreign
subsidiary, GRK Europe GmbH, located in Southwestern Germany. The
satellite office became necessary to better serve German and Swiss
customers, including the former parent company, Reisser, who had since
gone through reorganization and had reemerged.
Although the German operation is new and quite
small, it shows great potential for expansion and many strides have been
taken to secure a foothold in that market.
Estimates are that 4,000 to 5,000 American
lumberyards and hardware stores keep GRK products as stocking items.
Mostly, these companies buy GRK products via GRK's wholesale partners.
Foreign sales for 1999 are 96. 5%. Therefore, all jobs at GRK depend on
exports.
Foreign markets continue to be GRK's priority. Much
time is invested in the success of the European office and marketing
efforts have become more streamlined than ever. A sales increase of over
23% was attained in 2000. Approximately 25% revenue growth is expected for
2001.
A screw is a screw, right? . ...wrong! GRK has made
several innovations over recent years. Products have been filed for patent
and approved in countries and territories including Canada, USA, European
Union, Switzerland, China, Hong Kong, Taiwan and Japan. In fact, only
through innovation has this company survived. Innovation is the driving
force behind GRK's rapid growth. It is what makes our products more
desirable. Future growth and expansion will be directly linked to more
innovation and GRK's ability to market innovation effectively.
In 1994 and 1995, GRK filed patents in numerous
markets for its R4 Multi Purpose Screw. The R4 screw can be used in a
range of materials including hard soft woods, plastics, cement fiber
boards, sheet metal, some metal studs, particle board and plywood, without
drilling a pilot hole. The screw's special hardness is achieved through a
fine tuned heat treatment process which makes screws virtually
unbreakable. The R4 is the only fastener of its kind and is available in
lengths from 10 millimeters to 300 (3/8" to 12"). Even at its
maximum length the R4 can still be used without prep work, without
breaking.
GRK's next patent came with the development of the
RSS Structural Screw, an alternative to commonly used lag screws. A patent
was filed for this fastener in various countries throughout 1995 and 1996.
The RSS design enables users to skip the pre-drilling, wrenching and
pre-countersinking stages, thereby eliminating three of four steps
necessary when using ordinary lag screws. The RSS is stronger than the
minimum requirements for the regular lag screw. This, too, is achieved through heat treatment. The process also
makes the screws elastic enough to bend to a minimum of 25 degrees before
breaking. This, along with the RSS' edgeless head design further enhance
this screws safety as a structural building component. The RSS is
available up to 400 millimeters (16")
In 1998 GRK acquired its third patent, the W-Cut
Thread. This thread design features tiny, w shaped cuts which greatly
reduce friction during installation in fibrous materials. The W cuts
penetrate the material in the same way a saw blade would. This process
reduces the risk of screw failure (a common problem with ordinary
fasteners) and splitting of component materials such as wood or plastic.
GRK also features exclusive products such as the GRK
Trim Screw, which has the smallest screw head in the industry. GRK Trim
offers a safer and more attractive alternative to standard finish nails.
The Top Star Adjustable Distance Screw is another of GRK's exclusive
products. This screw eliminates the use of shims in door, window, cabinet,
threshold and other installations where items must be leveled. The Top
Star provides for easy two step installation, saving the contractor time.
It also makes future adjustments possible i.e. doors which have become
hard to open and close may be adjusted to their original straightness in
only seconds.
In 1999 GRK introduced its one of a kind Climatek
plating. This coating was developed over two years in cooperation with an
American company. It
is the only fastener plating which offers long term rust protection while
maintaining a desirable golden appearance (most long term coatings are
gray or green). It is also more difficult to damage the Climatek plating
than that of competitive rust inhibitors. Ordinarily, coatings will
sustain damage due to friction during fastener installation.
GRK continues to strive for further innovation.
After all, innovations are the basis of this company.
GRK's foreign market expansion began in late 1992 by
turning to the US Upper Midwest. One year later we expanded deeper into
the Midwest and the U.S. Northwest. To this date, the Upper Midwest
remains GRK's stronghold. The market penetration here is such that GRK
products can be bought in almost all lumberyards. To a lesser degree, this
also holds true for other Midwestern States such as Nebraska and Kansas
and all of the Upper Northwest. Roughly at the same time the Midwest
expansion began, GRK also solicited business in the US Northwest. Finding
customers in Oregon, Idaho, Montana and Wyoming. 1994 called for an
expansion into the New England States. Since then, these areas have become
additional mainstays for GRK products and marketing.
After several failed attempts, 1998/99 proved to be
promising and/or break-through years for areas such as Washington State,
Texas, Missouri, Oklahoma, Alaska, Michigan, Kentucky, Tennessee, Arizona,
New Mexico, Colorado and Upstate New York. With US distribution now in
place in all areas except the Southeastern United States, it seems clear
where future expansion is headed, but not before solidifying business in
newly established distribution areas, including Japan (1997) and the
European Union (1998). It is better to serve a smaller area and do it
well, than to overextend to the point of not being able to function. GRK
will continue to identify its possible markets as financial resources
become available. It is not so much a question of "will this market
be viable?" rather than, "is the money available to find a new
territory or salesperson?".
For that same reason GRK does not actively market
its products to mass retailers (i. e. big box stores). Although these
retailers have potential, professionals, for the most part still shop
elsewhere. GRK's strategy past and present has been to sell its screws to
lumberyards and building supply stores specialized in serving professional
builders. Mostly, these stores are independently owned or belong to
regional chains or buying groups.
Patent protection has become an important part of
what we do. In efforts to catch up with GRK's innovation lead, some
companies have resorted to copying our products illegally. All settlements
so far have been to GRK's satisfaction.
GRK is very serious about protecting its
intellectual property rights and closely monitors advertising and
competitors in producing areas as well as sales territories. In a time in
which our competitors are quick to release inferior copycat products to
compete against our patented fasteners, this has become more important
than ever. Infringers are prosecuted to the fullest extend allowed by law,
wherever or for whichever product they occur.
In addition to selling to specific customer groups,
GRK strongly believes in adequate product pricing. After all, our products
are unrivalled for quality and reliability. In a way, we are the benchmark
for the industry, as has become obvious, since many competitors are
struggling to get knock-off products in the market. For this reason, GRK
has been rewarded with rapid growth and high customer loyalty. Customers
are willing to pay extra as long as GRK keeps up its end of the bargain
and continues to develop and produce high quality products.
GRK has attained enough prominence to be featured on
TV shows such as "This Old House" and "Home Savvy", as
well as numerous editorials (all free of charge) and is receiving industry
awards for innovation.
Future expansion of buildings and staff at the
Thunder Bay location and in the field will be necessary to continue to
grow the company aggressively.
2001 also marked other milestones for the company. For the first time
ever GRK ventured into TV advertising and promoted its products on
national TV in the United States. Over several months, GRK spots could be
seen networks such as Discovery, TLC and HGTV. Also GRK doubled the size
of its warehouse a second time.
As 2002 edged closer, GRK began to build momentum for new products which
were planned for release in the new year. With several products under
development, GRK chose to focus on two specific items, a metal fastener
and insulation tools. Both products were a huge success with customers
when prototypes were first shown.
With the aid of the new products and growing demand on existing items, GRK
planned a continued sales growth of just over 20% in 2002. The new year
was to prove our projections drastically wrong. With start of the year
demand for our products reached unprecedented heights. Instead of 20%
growth GRK was struggling to fill orders which were growing the company
far quicker expected. The demand for some items more than doubled. As of
late March, 2002, GRK's year to date growth was well over 40%. To
facilitate this increase GRK continues to expand its production
capabilities.
2002 came to a close with fantastic results. The sales growth experienced
early in the year was maintained and production capacity was successfully
expanded.
The year also had other highlights. GRK's increased name recognition has
made the company website popular with many users. http://www.grkfasteners.com
receives over 60,000 hits per month and that figure is climbing steadily.
At GRK we have recognized the importance of providing a strong online
presence. Throughout 2002 we have added new pages and features to our
website and will continually expand the information offered. Early in 2003
online ordering was made available for GRK's wholesale partners, as well
as integrating GRK's computers with those of customers throughout the
world, by granting customers secure access to continual updates and
information on GRK All this is just a few mouse clicks away.
In 2003 GRK began supplying its fasteners free of charge to high school
shop classes and technical colleges in order to introduce young people to
its products and to do its part to support practical education and
hands-on experience.
GRK's tremendous success has led some companies to imitate our wares and
even to infringe our patents. To curb such practice, GRK has invested
heavily in advertising in 2003 in order to raise consumer awareness of our
unique products and to make it easier to spot imitations. Full color
repeat ads have been purchased in more than two dozen trade publications.
To see our print ads, connect to our website media page. Our products will
also appear in long TV segments aired by ABC, PAX, HGTV, and other
networks. Patent protection has become an important aspect of our
business. Infringers are prosecuted to the fullest extent allowed by law.
So far all settlements have been in our favor. Unlike some of its
competitors, GRK insists on high ethical standards. Keep in mind: If it
has a star drive and the label does not say GRK, then it is an imitation.
MAKE SURE YOU BUY THE REAL DEAL: THE ORIGINAL STAR DRIVE SCREWS FROM GRK.
Thank you very much for your interest in our company
and we wish you and your families a successful future.
This text was originally written by Dr. Thorsten Walther, D.B.A.
(1975-2003)
Kind regards,
Yours, Gerda, Uli and Mirco Walther
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