Economy tests Murphy and Nolan's mettle

CNY Business Journal (1996+), Nov 21, 2003 by Kropf, Annemarie

SYRACUSE - Carrier Corporation's decision to leave Syracuse directly affects its workers, but the trickle-down effects can be felt at Murphy and Nolan, a metals distributor. To compensate for this lack of business as well as the downturn in the economy, the company has diversified its offerings.

"It's been a constant battle," says John J. Murphy III, president and treasurer. "It's a constant effort. It pushes you along."

New, value-added services include production saw cutting, lathe cutting, material deburring, material grinding, miter cutting, vendored machine parts, and transportation services. Murphy says these services are more cost-effective for customers than going to another company.

Murphy and Nolan distributes carbon, alloy, stainless, and aluminum bar and tubing from its Syracuse headquarters and a branch office in Rochester. The business leases seven trucks from companies such as DeCarolis, Penske, and AM Leasing. Three of the trucks are based in Syracuse, while the remaining four are based in Rochester. Customers are privy to the company's trucking schedule and buy parts according to the schedule.

The company receives its metals from steel mills around the country and the world. Every month, Murphy and Nolan receives anywhere from 2,000 to 4,000 pounds of metal products. Customers buy the metals to make a variety of things such as furniture (steel tubing chairs), computer frames, and file cabinets.

"We do what a supermarket, like Wegmans, does [only] in metals," says Edward J. Dera, vice president of sales and marketing and Syracuse branch manager. "We buy in large quantities but sell smaller quantities."

The company's 4,000 clients include individuals and corporations, but Dera says about 95 percent of business comes from companies. Clients include Morse Manufacturing, Crucible, JPW Riggers & Erectors, Upstate Medical Center, Syracuse University, and Oneida Limited. "Our customer base is very diverse," Dera says, "from major manufacturers to one- or two-machine shops."

"Basically anybody that makes a part out of metal," adds Murphy.

Dera says the territories covered by the two locations don't overlap. Rochester covers west of Geneva, while Syracuse covers east of Geneva and from Massena to northern Pennsylvania. Murphy says that having a larger range than that doesn't really make much sense in the metals-distribution industry. "How far are you going to go to the grocery store?" he asks, continuing the supermarket analogy. He notes that the company would have to add another location in order to service a larger area. There are no definite plans for expansion at this time.

In 1953, Jack Nolan and Jack Murphy, Jr. founded the company on the 100 block of Erie Boulevard West in Syracuse. In 1959, the company moved into its current location at 340 Peat St. and expanded over the years to encompass 24,000 square feet of office and warehouse space. Murphy and Nolan added a second location in Rochester in 1972, and moved the branch to its current

14,000-square-foot location in the early 1980s. John J. Murphy III joined the company in 1972 as a warehouse manager and worked his way up to his present position of president and treasurer, which he assumed five years ago. Dera joined the company in 1984 as branch manager. Nolan died in 1976, but the Murphys kept his name for brand recognition and out of respect.

Murphy and Dera agree that over the years, the competition has become fiercer. "The pie that we and [10] competitors used to eat from was 12 inches in diameter," Dera says. "Now it's 10 inches in diameter with 11 competitors."

"That's where value-added services and relationship building comes in," Murphy says. "We want to have the best possible service for the best price. We haven't lost sight of being able to take care of the smaller customer."

BOTW PROFILE

John J. Murphy III President and Treasurer

Murphy and Nolan, Inc.

* Age: 53

* Education: B.S. in business administration from Providence College

* Residence: Manlius * Family: Wife, Joanne; two sons, John IV and Patrick; one daughter, Laura; two grandchildren, Claire and Kathryn * Favorite Part of the Job: Interacting with clients

* Hobbles: Golf and boating

* Favorite Type of Movie: Comedies

BOTW FACTS

Murphy and Nolan, Inc.

340 Peat St.

P.O. Box 6689

Syracuse, N.Y. 13217

Phone: (315) 474-8203

Fax: (315) 474-8208

www.murphynolan.com

* Type of Business: Distributor of metal products

* Founded: 1953

* Locations: Syracuse and Rochester

* Employees: 51 total; 28 in Syracuse

* Square Footage: 40,000 total; 24,000 in Syracuse

* Key Officers and Titles: John Murphy, Jr., chairman of the board; John J. Murphy III, president and treasurer; Edward J. Dera, vice president of sales and marketing and Syracuse branch manager; William Murphy, secretary and controller; Jack Daily, vice president of sales in Rochester; John J. Murphy IV, Rochester branch manager

* Annual Revenue: $15 million