Member Spotlight:听Kripke Enterprises
Human Element Energizes Every Decision at Kripke Enterprises
One wall of the boardroom at is devoted to an illustration of the periodic table 鈥� understandable for the business of a non-ferrous metal trading company. The primary element, though, is identified as the human element. The accompanying text reads, 鈥淲hile the elements of the periodic table hold the physical universe together, the human element, which cannot be mapped or charted, is the force that holds our spirit, our hearts and our commonality together.鈥�
That鈥檚 been the guiding principle of the company since its 1993 founding by Larry and Joanie Kripke, building on decades of experience in metals trading shared by Larry鈥檚 brothers Harley and Bobby 鈥� first with the Toledo-based company begun by their father, then with Kripke-Tuschman Industries, finally with Omnisource.
Founder Larry鈥檚 son, Matt Kripke, now CEO, echoes the sentiment: 鈥淢aybe what I鈥檓 most proud of 鈥� and I鈥檓 proud of many things 鈥� is that the 鈥楪reat Resignation鈥� of the Covid pandemic didn鈥檛 affect us. We had almost zero turnover. That speaks to our leadership team: Chad Kripke [President], Marvin Finkelstein [Senior Vice President], Andy Golding [Chief Strategy Officer], Scott Chaffee [Chief Financial Officer], Eric Phillips [Chief Operating Officer] and the rest of the senior staff.
鈥淭hey let our employees know they care about them. Our goal is empowering people and helping them grow.鈥�
Before that was possible, of course, the company itself had to become empowered and grow into today鈥檚 aluminum-dealing powerhouse with 70 employees and $260 million in sales last year. Larry Kripke鈥檚 own vision for the company was initially far more modest, Matt says.
鈥淢y Dad never wanted to work for a large company again; he just wanted to provide a livelihood for him and his family. His business plan was accepted by then-Capital Bank, and he was a year and a half into operations with just a handful of employees 鈥� when he got sick and was in and out of the hospital for about a month.鈥�
Despite his reluctance to enter the family business and feeling out of his element after an earlier background in sales, Matt got his uncles鈥� blessing to 鈥渓earn by fire,鈥� as he says. 鈥淚鈥檇 talk with Dad in the hospital, he鈥檇 coach me 鈥� and we kept going. When he came back to work, I told him I wanted to join him. It hadn鈥檛 been a plan on either of our parts.鈥�
Following the initial learning curve, Matt was restive. 鈥淚t took me a long time to find my footing,鈥� he says. 鈥淚 didn鈥檛 have a good vision of what we could become, but I felt things were moving too slow.
鈥淚t was around 1998 when I approached Dad and said that I wanted something bigger; I wasn鈥檛 happy. As long as I live, I will always appreciate how he handled it. A lot of people I know in other family businesses had dads who would have said, Fine, no problem, don鈥檛 let the door hit you on your way out.
鈥淚nstead, he said, 鈥業 don鈥檛 want you to be here if you鈥檙e not happy.鈥� He recommended an organizational psychologist he knew, told me to see him, interview at other companies and then make my decision.鈥�
The lesson Matt learned was 鈥淗e was treating me as his son first, employee second. We were really small at the time, maybe five employees. I went out, looked around 鈥� and I stayed.鈥�
Matt credits both parents for the family-first philosophy that underlines a company core principle of relationships: 鈥淣ot just relationships with clients, but with employees as well. My Dad would tell our staff, 鈥業鈥檓 going to take care of my family first, I want you to do the same with your family. We can adjust our operations to meet your family鈥檚 needs.鈥欌��
The company has impressively met its own growth needs, with offices in Florida, Tennessee and Baltimore, Maryland. Matt calls the company鈥檚 growth since 2001 鈥渆xponential.鈥� As well, Kripke Enterprises acquired Mid-South Aluminum, with whom they鈥檇 had a longtime relationship. It鈥檚 been another mutually satisfying relationship, Matt says: 鈥淲e鈥檙e happy that it鈥檚 helped us financially, but happier to see the satisfaction of all these other people who are now part of our team.鈥�
And the ever-challenging Covid? It鈥檚 the reason the company, in the midst of pandemic-enforced economic doldrums, entered retail recycling. Matt notes the new pleasures, after the company鈥檚 history of 40,000-pound-truckload trade deals, of interacting with the general public. Not that the pandemic wasn鈥檛 an anxious time: 鈥淔rom April, May and June of 2020, our sales volume was down 70 percent. But we could look employees in eyes and say, 鈥榃e鈥檙e going to be fine; our rainy-day planning will get us through.鈥� We recruited and trained new employees while other companies were reducing their staff. Three new salespeople we hired are now doing great. We also decided that metal markets, like the stock market, had taken a hit 鈥� but we bet on the future, used our new building and filled it with metal while others were freezing stock. That turned into a home run as well.鈥�
He characterizes the company鈥檚 relationship with the UT Family Business Center as another big score. 鈥淚 joined through my earlier job. I got involved in an affinity group and met people through whom I鈥檓 now on the board of Signature Bank. Another person referred our CFO Scott Chaffee to us; he鈥檚 been with us for 11 years. Relationships through the Center have been critical to our growth. Andy Golding, Eric Phillips, Dave Fisher our IT VP, Scott Chaffee 鈥� they all got involved in affinity groups.鈥�
Matt appreciates the confidentiality that allows the sharing of ideas that have made the company stronger: 鈥淪enior leadership learn a lot from listening to others, but you learn even more by teaching others in an affinity group.鈥� He and his wife are excited to involve FBC in their long-term philanthropic plans.
As the company reminds its people about the human element 鈥� its symbol is HU, its atomic number is Infinity.听