Growing the Family Business Through Multiple Generations

By
James Loy Jr. and wife, Antoinette Kerr

James Loy Jr. and wife, Antoinette Kerr, formed a family operated steel sales agency in Charlotte, North Carolina.

In the following article James Loy Jr., president, Scout Metals, Charlotte, North Carolina, recounts his beginnings in the rep profession leading to the establishment of his own agency last year.

One of my earliest childhood memories was pulling through a bay door of the Alpha Tube plant in Toledo, Ohio. Our semi-reliable 1975 Buick Skyhawk made another trek through the winter weather to pick-up Jim Sr. My dad walked from the tube mill to the car with a smile, but clearly he was worn out from his 10-hour shift. Both my grandfathers were investors in that tube business. It was truly a family affair. Maybe that’s why previous bosses have told me that steel is in my blood?

I followed in the footsteps of many men in the family. Until recently, I assumed it began with my grandfather, Wilbur Loy. But then I learned that my Great Grandfather Rowlands worked in the steel mills of Youngstown Ohio. Great Grandpa Loy, an engineer on the Pennsylvania Railroad, hauled raw ore to the steel mills.

When Grandpa Loy (Wilbur) graduated Youngstown University he landed a sales trainee job with Sawhill Tubular Products in Sharon, Pennsylvania. Wilbur went on to work as a direct salesman for several mills. In 1977, Grandpa was one of the original investors in Alpha Tube Corporation (AK Tube, LLC today). We all benefited from the lessons he learned along the way. My father and uncle Jack were not handed agent jobs. My grandfather insisted they learn the business from the ground up — from mill operators to inside sales, and from outside sales to agents.

James Loy Jr., Wilbur Loy, and James Loy Sr

Following in family footsteps, James Loy Jr. (left) founded the Scout Metals sales rep agency in 2020 with his father James Loy Sr (right). He follows in the footsteps of Wilbur Loy (center) and a host of relatives connected to the steel industry before him.

Even with extensive family history and a name that could provide opportunities in the steel business, I vowed to never follow in the family’s footsteps. I had other ideas and dreams, but somehow the steel business kept calling my name, and my dreams weren’t playing out as anticipated. So, I dove into the deep end of the steel world and have been swimming in it ever since.

My first “industry” job was a clerical position at Loy & Associates, my father’s rep agency. I picked up a lot during my time at his agency, learning industry lingo, specifications, material types, and more. I built a foundation there.

The idea of starting a new agency with my father was exciting and complicated. In the words of some baby boomers, Covid turned the industry “every which way but loose.” My dad lost AK Tube as his main principal during 2020. That was a shocker. Jim Sr. had served them as a direct employee from 1977 to 1988, and as a manufacturers’ rep from 1992 to May 2020. We thought he would close out his career with them. I was working as an outside sales rep for Lock Joint Tube when this insatiable idea of working in a family business got kicked into high gear and we founded Scout Metals with the help of Jim Sr.

With a few things learned through MANA, Agency Sales magazine, research and experience, we were able to negotiate new contracts with some of the industry’s leading manufacturers.

We Are the “Sandwich” Generation

My wife and I are squarely in the middle of the five generations. We’re considered the “Sandwich Generation” (not because we grew up on them) because we are often caught in between Traditionalists — born 1925 to 1945, Baby Boomers — born 1946 to 1964, Millennials — born 1981 to 2000, and Generation Z — born 2001 to 2020. In most cases, the Sandwich Generation is caring for elders and nurturing children. Since my spouse Antoinette has been more involved with groups like MANA’s “A League of Their Own” — a special interest group for women manufacturers’ representatives focusing on connecting, networking, education and mentoring in the community of women manufacturers’ representatives — she’s observed that many people our age have stepped in to help with family businesses.

Starting our own agency today would need to include at least four of the five generations (although we are hopeful that our four-year-old nephew Lane will keep Scout Metals going). Success will be incumbent on working with multiple generations within the agency.

Scout, the company mascot

Scout Metals is named for the company mascot, a rescue Schnoodle
that they call the Chief PAWlicy Officer.

What is most often presented tends to dismiss the contributions of older agency reps as outdated, or label millennials as aloof.

For the past few decades, Pew Research Center has been committed to measuring public attitudes on key issues and documenting differences in those attitudes across demographic groups. One lens often employed by researchers at the Center to understand these differences is that of generation.

Pew Research says that traditionalists like Grandpa Loy are generally “dependable, straightforward, tactful, loyal,” because they were shaped by the Great Depression, World War II, and radio. Many grew up in an era where manufacturing depended on timeliness and punching the clock. This means they tend to be motivated by respect, recognition, and providing long-term value to the company.

Most traditionalists have retired from agencies. But their legacies ring true. Grandpa Loy taught me to make a good first impression by “doing what you say you’re going to do when you say you’re going to do it.”

Research also says baby boomers like my dad are often optimistic, competitive (but still team-oriented), and workaholics. From principals to customers to sales reps, I’ve noticed they like to work face-to-face. Pew reports, “Achievement comes after paying one’s dues; sacrifice for success.” Pew says that 65 percent of baby boomers plan to work past the age of my father.

Jim Sr. taught me to work hard and smart, to listen more and talk less, to always be professional — even in the face of adversity or frustration, and to work for what I believed in. He taught me to fight for customers when appropriate and to do the same thing for principals. It’s hard not to listen to someone who has been in the tube business longer than I’ve been alive. He’s highly knowledgeable and experienced in a wide array of markets. I consider him to be the benchmark for technical tube salespeople. He’s eager to learn new email platforms and CRM tools, proving that evolution is key to maintaining relevance and edge in a fast-paced business climate. I hope I have his energy and enthusiasm at 63.

Then there is Generation X (early-to-mid 1960s to the early 1980s). Researchers describe us as flexible, informal and independent. We were deeply influenced by video games and the dot-com boom. This means we have a frustrating need to find technology to handle everything. According to PEW, Gen Xers make up the highest percentage of startup founders at 55 percent.

And last — but not least — we have the millennials, who currently make up the largest percentage of the workforce. Pew predicts that by 2025, millennials will comprise 75 percent of the global workforce. Our younger team members are competitive in their own rights. In many cases, they are looking for unique work experiences and opportunities to grow. Millennials in our agencies often get a bad reputation, but when engaged, their creativity can bring a wealth of value and innovation to customers.

We are humbled by our current scenario and the opportunity to work with numerous industry-leading manufacturers. We are also grateful for our MANA friends and the wisdom, experience and guidance they’ve offered us as new members and as a startup.

We are confident that our customers and principals will benefit from a unique blend of relationship building, CRM tools, and old-fashioned service. This is the beginning of our story. Our goal now and in the future will be to continue layering generations, all of which will add specific and unique value to the industry.

MANA welcomes your comments on this article. Write to us at [email protected].

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  • photo of James Loy Jr.

James Loy Jr. is a third-generation tuber and the founder of Scout Metals. Scout Metals is a group of sales professionals that help tubing, flat steel, and fabrication businesses expand and manage their sales, www.scoutmetals.com.