When Randy and Jeff Salvatore bought Stamford Forge, the 30-year-old company possessed a pair of winning business attributes: great quality and a great reputation. What was needed, they determined, was an infusion of data of the sort “that we live and die with every day.”
Randy Salvatore is the principal of RMS Construction, and Jeff Salvatore, his uncle, is the owner of Accurate Tool & Die.
“This thing evolved very quickly and the thought process took about a minute because that”™s how natural it was,” said Jeff Salvatore. “It”™s a no-brainer.”
According to Jeff Salvatore, the two founders of Stamford Forge, European-trained craftsmen Frank DeSantis and Peter Castrovillari, were retiring from the business after over 30 years.
DeSantis, who didn”™t want to see the Forge die, approached Randy Salvatore, who had been a loyal customer, to see if he had any interest in buying the business.
“It made sense,” said Randy Salvatore. “I called Jeff, whose background is manufacturing and metal manufacturing. I think this business has great potential if we apply the standards that we apply to our businesses.”
Randy Salvatore, who was honored as the “2007 Builder of the Year” by the Home Builders & Remodelers Associations of Connecticut, said the Forge had been run the same way for 30 years.
“From a quality perspective, from a customer satisfaction perspective, they were great,” said Randy Salvatore. “But they didn”™t adapt with computer systems and CAD system that we live and die with on a day-to-day basis. This is the perfect example of a company that has a great history here, it”™s done unbelievably well over the years, so we can now take it to the next generation and start to grow it and expand the whole business.
“Small specialty businesses like this are invaluable to the construction industry,” Randy said. “They provide customized services that make a real difference in the overall quality of the project.”
DeSantis and Castrovillari are working on a part-time basis to ease the transition.
“They were comfortable in business,” said Jeff Salvatore. “For what they had it was a very good business with quality and service for their customers. Our businesses are successful based on the same thing; it seemed to be the perfect fit with an upside that is extremely large.”
According the Jeff Salvatore he and his nephew will be bringing in new technologies and an eye toward growth.
“The synergies are really there,” said Randy Salvatore. “We understand the end user, the construction business, and Jeff is a manufacturer.”
For Accurate Tool & Die, 60 percent of their business is in aerospace steel.
“The margin for error is so small, so to Jeff when looking at the manufacturing side ”“ it”™s like a cakewalk,” said Randy Salvatore. “We are applying a lot of these automated techniques that he uses.”
The Salvatore”™s are currently looking for a location in Fairfield County for the Forge after the building had been sold by the former owners.
Currently the Forge is operating in an addition of the Accurate Tool & Die facilities in Stamford until a permanent facility is found.
“We”™ve already been able to help with some of the manufacturing that they would have otherwise bought out of a catalogue,” said Jeff Salvatore.
Chris Salvatore, Jeff Salvatore”™s son, will become the general manager of Stamford Forge.
“Chris is a natural fit,” said Jeff Salvatore. “He was a project manager for RMS and before that he has a degree in finance. We went through the S”™s in alphabetical order. He would have been the end user and he”™s been walking around my shop since he was 13; he”™s been around it his whole life.”
Jeff Salvatore says that a lot of the manufacturing in Connecticut has recently been going to China but that Stamford Forge”™s particular market isn”™t going anywhere.
“This is here to stay with the amount of construction in this area,” said Jeff Salvatore.
Since picking up the business, the Salvatore”™s have doubled the staff from five to 10 employees.
“The work ethic is there, the skills are there,” said Randy Salvatore. “We”™re certainly not going to lower the standards of the company, which had a phenomenal reputation. Norwalk hospital calls us to work on a Saturday because they know it”™s going to be done, it”™s going to be done right, and it”™s going to be done on time.”
According to the Salvatore”™s, they have kept a lot of the businesses clients and have expanded via word of mouth.
“They had never done any marketing,” said Randy Salvatore. “I don”™t think they even had cell phones.”
Since the Salvatores”™ acquisition, the Forge has begun a marketing campaign, developed a plan to expand service options and established a Web site.
“You need to be able to show that you can do business in the modern day; you”™ve got to service your customers,” said Randy Salvatore. “For some reason in the construction business, if you can tell someone a deadline and meet it you”™re a hero. People are used to such mediocrity. If you say something all you need to do is follow through. Business is simple.”
Randy Salvatore says that the Forge now has the advantage of being well capitalized as the economy slows.
“Many companies aren”™t well capitalized and that creates a huge risk,” said Randy Salvatore. “We”™re very well capitalized so it”™s not an issue, you can buy better and pas that long to the customers. Down markets are great times to grow businesses.”
