AAEQ Manufacturing & Recycling

One-stop-scrap shop
Pull up to any of this company’s lots, and their buildings look more like movie sets than your average scrap metal, manufacturing or recycling facility. But that’s exactly why they designed it that way—to have a clean, polished look and avoid sticking out like a sore thumb in the local areas. As its name, AAEQ, Manufacturers and Recyclers suggests, the company is in the business of salvaging recyclable parts—and this business is growing. The name AAEQ stems from the four base service offerings within the company; AA Midwest transmission cores; AA Midwest auto-recycling for exports; AAEQ’s scrap metal division and EngineQuest; an online automotive parts finder. Recently, the company invested over US$2.5 million into its newest operation—one of three main headquarters; a step which only serves to suggest that AAEQ is braced for big growth opportunities.

There are about 110 employees spread amongst AAEQ’s three operations in Chicago (60), Blue Island (10) and the rest are based in Las Vegas.
Established in 1949, AAEQ Manufacturers and Recyclers has thrived over the years and today stands as a well-positioned company that provides leadership in the automotive manufacturing, remanufacturing and recycling industries. Known for its outstanding customer service and high degree of integrity, AAEQ tailors its services to meet the needs of each customer group while serving a diversified business model under its multiple divisions.

All in the family

This family-owned and operated company is directed by brothers Scott Stolberg, who oversees operations in North Las Vegas, Nevada, and William “Billy” Stolberg, who runs the Chicago-based warehouse and processing facility. The brothers share the president and CEO titles but divvy out decision-making tasks as they arise. “Let’s just say it’s a good thing that my brother and I are in different cities on most days,” jokes Scott Stolberg, co-president and CEO of AAEQ, Manufacturing & Recycling, speaking from Las Vegas. “In the big picture, we really do agree about 99.9 percent of them.”

It all began 61 years ago, when his father and uncle decided to start up shop. “For close to 50 years, we primarily supplied engines for remanufacturing. We were large-scale scrap generators because we processed, many times. Anywhere from 300-500 engines per day would go through our operations to be made-ready for engine builders,” tells Stolberg. Over the years, the company expanded into other markets including processing coal for clients in South and Central America to running a full-service scrap metal operation in Las Vegas, Nevada. “We also have a division that manufactures new engine parts—our customers want the parts used, but we can’t get itso we make it for them,” explains Stolberg. This family-fuelled, customer focused approach coupled with the demand and resources for expansion has allowed AAEQ to be the diverse parts manufacturing and recycling vehicle it is today, whilst retaining that valuable personal touch.

Customer base

In the automotive parts salvaging business, many of AAEQ’scustomers re-manufacturer engines and transmissions which are then distributed to company fleets such as police departments, The company’s scrap metal is generated from that operation because said customers don’t necessarily need the whole engine, they might just need parts of it which in turn leaves surplus components for the scrap arm. AAEQ’s scrap metal is dealt with very diversely. Within this, the company does its fair share of exports as well as domestic sales to factories in the U.S. There is also a division that processes end-of-life vehicles which also ties into the exports operation Within all of these specific markets the company encounters a range of large consumers and small businesses, both of which it has the proven ability to tailor its products to Of course, mastering this takes a customized-approach which comes down to industry knowledge. AAEQ is also adept in spotting those opportunities first when they present themselves, and piecing together economic ways to capitalize on them be it a large order or single part. Essentially it’s all about scale and this company has the full spectrum.

Diversification key to growth

 Even on first glance, it’s plain to see that AAEQ has enjoyed exponential growth since its inception. Back in 1984 there were six employees. Before the recession hit, the company hit a high of 150 employees. The brothers explain that the company has accomplished, “a 20-plus year of double-digital, above-average sales growth,” which they say  goes back to that basic philosophy of, “stick to what you know and look for opportunities.” Of course, amidst the up’s and down’s the brothers note that the global financial crisis made the financial year of 2008, “quite humbling.”

Yes, AAEQ took a step back during this tough time, but business has definitely bounced back since, showing overall market improvement in the last quarter and prompting the brothers to declare that this coming year, “will be even better.”

Challenges

It goes without saying that maintaining that family-run culture for some 110 people brings its own challenges, and the Stolbergs openly admit it was much easier to uphold when the company numbered 10 or 20. When the recession dawned, in particular, doing this proved tricky, but through continued employee respect and frequent communication, the Stolbergs say that good straff will stick with you and they have the team members to prove it.

“We have roughly 20 employees who have been with us for over two decades. A fact that is very telling of the company’s dedication to its team and customer service” Scott Stolberg says.

“My dad taught my brother William and I two things—equity and ethics—that I think really say a lot about company. We really make sure that we have a very strong balanced sheet, because we know there will be tough times and you have to be able to weather the storm.”

 The other part of achieving this is simply to do business the right way so that customers stay loyal, safe in the knowledge that AAEQ delivers every time they return. This is one aspect which the brothers say  will guarantee AAEQ’s success in the future; exactly what the company is re-positioning itself to do.

Future plans

For 2010, could the goal is maintaining the level of business that AAEQ has achieved in the past. It has been “a really good first quarter” thus far so despite the ambiguous nature of the world’s economic growth, things are looking good.  

Turning our attentions to the Engine Quest new parts division, approximately 40-45 percent of its total revenue comes from the AA Midwest division.  As one of the company’s most profitable divisions, without question, success in this arena comes down to offering a wide range of services.  A wide range; a family culture; a customized-approach and a history of excellence. It is tough to wish for much more from a parts manufacturer and dealer today, but you can bet that if any new opportunity is brought to the table, AAEQ will find a way to make it work.

www.aaeq.net

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