The Nix family, management team, and I have decided to exit the equipment sales portion of our business. This transition will begin immediately and should last through the remainder of 2016.
After careful consideration, this decision was reached in order for our company to focus all of its resources (people, time, and capital) on the core parts of our business: welding/equipment repairs, industrial fabrication and industrial coatings. On average these parts of our business have doubled in size every two years for the past 6 years, and even our most conservative projections show this trend to continue for the next few years. If we are to continue to prosper in this kind of growth environment, it becomes more and more imperative that we be absolutely diligent about scrutinizing where we do and do not deploy our resources.
Nix Equipment will continue to operate out of the current location as "Equipment & Repairs Division", a division of Nix Metals, LLC. and its parent company Nix Companies Inc. The shop will continue to offer all the welding, machining, heavy equipment refurbishing & repairs, as well as mechanical and mobile service work. This business primarily serves the agriculture, construction, and transportation industries. The shop will also continue the sale of parts, supplies, and metal through its office at this location. We are committed to providing parts and customer service to our customers who have previously purchased equipment. We will also work to retain all team members affected by this transition by utilizing them throughout the business. Adam Nix will remain as the manager of this location/division and Bill Nix will continue his work from this location as well. In addition to these services, the business will continue to sell trailers.
Nix Companies acquired the real-estate, equipment assets, and some inventory from the former owners of Tri-County Equipment in December of 2014 after the announcement that the business would close. We were able to retain five of the remaining employees at the time of the acquisition as well as utilize the 8 acres of real-estate and facilities for future expansion. Many of the equipment lines including Kubota had already been removed from the Poseyville location by the time we took over. Our plans were to operate the business as it was, consolidate our current welding & repairs shop with the newly acquired shop, and begin to build back many of the equipment lines. After nearly two years into the journey, most of the process went as planned, however, not being able to establish a solid flag ship equipment line to bring into the business made the long term challenges of the equipment business look much less desirable than many of our other rapidly growing opportunities. We ultimately still like the deal because it put us in a position to repurpose an otherwise dying business in Poseyville, as well as, re-invest in our long standing ties to the agriculture community.
At the end of the day, we have decided to exit a part of our business that was 'ok' in order to focus on core parts of it that could be 'great'. At this point in our journey we believe this is the best decision in order to continually move our company forward to the next level. Parts of our mission statement point to being "growth oriented" and to "exceeding our customers' expectations". We believe this transition better aligns Nix Companies with both of those key elements and that helps us to feel confident in the long term viability of this decision.
We would like to thank all of our long standing customers, the community, and our team members for their support and patronage thus far in the Nix Equipment journey, and in advance for your patience and understanding during this time of transition.