Rick Myers

27 June 2011
Introduction
Myers Industries, Inc. is a manufacturing company in the Container and Packaging industry. Myers Industries serves two different segments, a manufacturing segment and a distribution segment. The manufacturing segments consist of a Material Handling Containers group, an Engineered Products group and a Lawn & Garden group. There are multiple brands within each of these groups. The distribution segment consists of a group that distributes parts, tools and supplies to the auto repair and supply industry. This paper will focus on Myers Tire Supply, the distribution segment. The rationale for choosing Myers Industries was that it is a company that I share a name with, however the relationship ends there. After surfing their website, they appear to be a well established American company for which there was a substantial amount of information available.
Myers Industries, Inc. Background In 1933, Louis and Meyer Myers started a small family business, Myers Tire Supply. The business started out as a partnership between the two brothers with a loan note of $620 from their mother. The business initially supplied service products to the tire and retreading industry in Akron, Ohio, the rubber capital of the world. As Myers Tire Supply grew, the business branched into manufacturing to produce tire repair patches and to sell plastic and metal storage products. The brothers incorporated their partnership in 1955 and in 1963 became Myers Industries, Inc. In 1971, Myers Industries went public and by their 50th anniversary in 1983, with sales of $81 million, they were listed on the American Stock Exchange. With continued growth, more acquisitions, the opening of international divisions, and sales of over $600 million, Myers Industries became listed on the New York Stock Exchange (symbol “MYE”) in 2001. The company’s headquarters are still in Akron and had sales of over $737 million in 2010 (“Celebrating 75 Years”). The contribution to revenues by the Distribution Segment was $175 million. The Distribution Segment is also headquartered in Akron, Ohio. Today Myers Industries is an international manufacturer of polymer-based products for industrial, automotive, agricultural, commercial, and consumer markets. The company is also the largest wholesale distributor of tools, supplies and equipment for the tire and wheel service industry. Myers Industries is in the Containers and Packaging Industries of the Building and Materials Sector. There are 46 companies listed in the industry. In terms of market capitalization, Myers Industries ranks 19th out of the 46 companies. Their operating mantra, or in today’s terms their mission, first espoused by co-founder Louis Myers in 1934, “Know the customer’s needs and deliver superior products and service” remains today as the company’s motto (“Celebrating 75 Years”). It seems very strange that Mr. Myers recognized 77 years ago that meeting the customers’ needs was crucial to his business success, versus promoting his company products’ features. The Distribution Segment’s mission is clear – get the right product to the right location at the right time, which contributes to millions of people’s income, mobility and safety (“Celebrating 75 Years”). The distribution company grew from a business primarily concerned with selling tire repairs kits to individuals, to a company that supplied tire patching kits to a fledgling automobile service industry, to being the leading supplier of tire, wheel and under-vehicle service tools, equipment, and supplies. Myers Tire Supply buys and sells nearly 10,000 items. They buy from the top manufacturers in the industry with the most trusted brands to ensure the highest quality available to their customers. From a market and competition standpoint, the company's distribution segment includes the Myers Tire Supply, Myers International, and Myers do Brasil brands. With these brands, the company is the largest U.S. distributor