Specialty Fabrics Review February 2020 - 24

"Our acquaintances vouched for us to
each other and got us talking," Callahan
says. "It looked like a good business for me
and I looked like a good buyer for him."

After having moved
your operation, what
advice do you have
for companies that
are contemplating moving their
production facilities?
Whatever timetable you think it is
going to take, double it. However much
money you think it is going to cost,
double it. There's just so much that is
unforeseen. I estimated exactly what
I thought it would be and then we
added 50 percent to make sure we
were covered, and we had grossly
underestimated. It was probably 100
percent more than we thought it was
going to be. We were hoping that with
the 50 percent increase we would
come in at what we thought originally,
and we'd have wiggle room for a little
bit of overage, but we underestimated.

24 REVIEW FEBRUARY 2020

LEARNING CURVE
For the first year, Callahan was an absentee
owner while he fulfilled other contractual
obligations. Once he was free to devote all
of his time to the business, he began learning it from the ground up.
"I basically went out on the floor and
learned how to sew, learned what we are
making," he says. "I went on the road and
learned about our competition and our
customers. It's been a growth process. It
probably took me a good four to five years
before I was comfortable with every aspect
of our business."
While Callahan grew into the new
business, the truck tarp industry was
changing. In the past, it was common
for haulers to simply throw a tarp over
a trailer and attach it with bungee cords
while walking over the load. Regulations
prohibit such unsafe practices today,
leading truck cover systems to become
more automated-and more expensive.
A driver shortage and liability issues
have also driven demand for automation.
Callahan's customers need reliable,
automated cover systems so their drivers
can perform less time-consuming labor
and their mechanics can focus on other
maintenance areas, he says.
"We represent 13 different brands of
tarping systems, and a lot of times we
innovate, taking some of one brand and
some of another and mixing them together
to give customers exactly what they need for
their particular purposes," Callahan says.
MOVING ON
After taking a hit at the start of the
recession in 2009, Granite State Cover
& Canvas has grown consistently, to the
point that several years ago, it needed
a new facility. In the original location,

the company had grown physically by
spreading out to multiple buildings
within the industrial park-a less-thanideal solution, especially in winter.
Callahan estimates that the company was
operating about 35 percent over capacity
for its space, and it was tempting to move
quickly into any building that would
be an improvement.
"I'd say two or three of the locations
we were tempted to move into were not
as good as the one we ended up finding,"
Callahan says. "So patience is a virtue in
that process. We finally found a spot that
worked perfectly for us and for growth.
We've been here almost three years and
we've grown 10-15 percent, and we still
have room to grow."
As part of the relocation process,
Callahan engaged two consultants, which
proved valuable even when they had a
difference of opinion. For example, one
consultant favored leasing rather than
buying a building so the company could
reserve capital for growth. The other
favored purchasing a building over leasing
because the company would own the facility
regardless of what happened to the business.
"Because we got a bigger facility than we
were hoping to get, we ended up going with
leasing because it was so big that I couldn't
afford to buy it, and the advice of keeping
the capital to invest in growing the business
after we moved was solid," Callahan says.
"But I think if we had found a smaller
building, the other philosophy would
have worked. I had [both consultants]
together at times, and they would argue
the pros and cons. If you go with only what
you are thinking, sometimes you are not
considering all the different options."
The other temptation he avoided was
to immediately expand into multiple new
product categories after the move. Taking
an incremental approach allows his team
to become efficient and increase its profit
margin in one category at a time before
adding another new product line, he says.



Specialty Fabrics Review February 2020

Table of Contents for the Digital Edition of Specialty Fabrics Review February 2020

Specialty Fabrics Review February 2020 - Cover1
Specialty Fabrics Review February 2020 - Cover2
Specialty Fabrics Review February 2020 - 1
Specialty Fabrics Review February 2020 - 2
Specialty Fabrics Review February 2020 - 3
Specialty Fabrics Review February 2020 - 4
Specialty Fabrics Review February 2020 - 5
Specialty Fabrics Review February 2020 - 6
Specialty Fabrics Review February 2020 - 7
Specialty Fabrics Review February 2020 - 8
Specialty Fabrics Review February 2020 - 9
Specialty Fabrics Review February 2020 - 10
Specialty Fabrics Review February 2020 - 11
Specialty Fabrics Review February 2020 - 12
Specialty Fabrics Review February 2020 - 13
Specialty Fabrics Review February 2020 - 14
Specialty Fabrics Review February 2020 - 15
Specialty Fabrics Review February 2020 - 16
Specialty Fabrics Review February 2020 - 17
Specialty Fabrics Review February 2020 - 18
Specialty Fabrics Review February 2020 - 19
Specialty Fabrics Review February 2020 - 20
Specialty Fabrics Review February 2020 - 21
Specialty Fabrics Review February 2020 - 22
Specialty Fabrics Review February 2020 - 23
Specialty Fabrics Review February 2020 - 24
Specialty Fabrics Review February 2020 - 25
Specialty Fabrics Review February 2020 - 26
Specialty Fabrics Review February 2020 - 27
Specialty Fabrics Review February 2020 - 28
Specialty Fabrics Review February 2020 - 29
Specialty Fabrics Review February 2020 - 30
Specialty Fabrics Review February 2020 - 31
Specialty Fabrics Review February 2020 - 32
Specialty Fabrics Review February 2020 - 33
Specialty Fabrics Review February 2020 - 34
Specialty Fabrics Review February 2020 - 35
Specialty Fabrics Review February 2020 - 36
Specialty Fabrics Review February 2020 - 37
Specialty Fabrics Review February 2020 - 38
Specialty Fabrics Review February 2020 - 39
Specialty Fabrics Review February 2020 - 40
Specialty Fabrics Review February 2020 - 41
Specialty Fabrics Review February 2020 - 42
Specialty Fabrics Review February 2020 - 43
Specialty Fabrics Review February 2020 - 44
Specialty Fabrics Review February 2020 - 45
Specialty Fabrics Review February 2020 - 46
Specialty Fabrics Review February 2020 - 47
Specialty Fabrics Review February 2020 - 48
Specialty Fabrics Review February 2020 - 49
Specialty Fabrics Review February 2020 - 50
Specialty Fabrics Review February 2020 - 51
Specialty Fabrics Review February 2020 - 52
Specialty Fabrics Review February 2020 - 53
Specialty Fabrics Review February 2020 - 54
Specialty Fabrics Review February 2020 - 55
Specialty Fabrics Review February 2020 - 56
Specialty Fabrics Review February 2020 - 57
Specialty Fabrics Review February 2020 - 58
Specialty Fabrics Review February 2020 - 59
Specialty Fabrics Review February 2020 - 60
Specialty Fabrics Review February 2020 - 61
Specialty Fabrics Review February 2020 - 62
Specialty Fabrics Review February 2020 - 63
Specialty Fabrics Review February 2020 - 64
Specialty Fabrics Review February 2020 - Cover3
Specialty Fabrics Review February 2020 - Cover4
https://www.nxtbook.com/ata/specialtyfabricsreview/specialty-fabrics-review-october-2022
https://www.nxtbook.com/ata/specialtyfabricsreview/specialty-fabrics-review-september-2022
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-august-2022
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-july-2022
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-june-2022
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-buyers-guide-2022
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-may-2022
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-april-2022
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-march-2022
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-february-2022
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-january-2022
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-december-2021
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-november-2021
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-october-2021
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-september-2021
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-august-2021
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-july-2021
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-june-2021
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-buyers-guide-2021
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-may-2021
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-april-2021
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-march-2021
https://www.nxtbook.com/ifai/specialtyfabricsreview/specialty-fabrics-review-february-2021
https://www.nxtbook.com/ifai/specialtyfabricsreview/0121RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/1220RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/1120RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/1020RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0920RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0820RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0720RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0620RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/RVBG20
https://www.nxtbook.com/ifai/specialtyfabricsreview/0520RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0420RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0320RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0220RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0120RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/1219RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/1119RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/1019RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0919RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0819RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0719RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0619RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/RVBG19
https://www.nxtbook.com/ifai/specialtyfabricsreview/0519RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0419RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0319RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0219RV_Feb
https://www.nxtbook.com/ifai/specialtyfabricsreview/0119RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/1218RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/1118RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/1018RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0918RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0818RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0718RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0618RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0518RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/RVBG18
https://www.nxtbook.com/ifai/specialtyfabricsreview/0418RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0318RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0218RV
https://www.nxtbook.com/ifai/specialtyfabricsreview/0118RV
https://www.nxtbookmedia.com