Entrepreneurs: Chris Sandusky and Jim Banks
IPT Keeps Ball In Play
Company grows from basement to the old Fort Devens gym
The next time you're tempted to re-decorate your office with some splendid cherry or rosewood veneer, consider that the wood flooring in the offices of Chris Sandusky and Jim Banks is decades-old parquet left over from the old, army-issue racquetball court their offices used to be.
Then consider that the company Sandusky and Banks founded in 2000, Integrated Process Technologies Inc. of Devens, has grown more than 120 percent in terms of revenue in the past three years, has nearly doubled its number of employees to 80, and has zero debt and no venture capital obligations.
Not bad for a company started in Sandusky's basement, next to the water boiler. Today, the company is not fancy, but then, it doesn't need to be.
Keys To Success
Integrated Process Technologies, or IPT, is, like the name implies, an integrated process engineering, fabrication and automation company specializing in the biotechnology market.
For example, if a company needs a new biotech manufacturing facility built, IPT is the company that can design, manufacture, install and commission all of the equipment in it, and make sure it all works together smoothly.
From fermenters to chromatography and microfiltration machines, IPT can and does design and build the gamut of necessary biotech machinery.
The key to their enormous success, Sandusky said, is the fact that the company, from day one, has been focused solely on execution, and not on sales, marketing or accounting.
"What we're focusing on as a company is how do we execute better and cleaner every day?" Sandusky said. "With better execution, everything just kinda takes care of itself. You end up with better and happier customers and you increase margins, just by doing a better job."
The critical component in IPT's execution strategy is integration. By having the engineers and the industrial fabricators together under one roof, there is less costly finger pointing if something goes wrong. Minor engineering mistakes that could turn into major disasters during production can be found sooner and fixed more easily than the more traditional approach of hiring separate companies for the engineering and production.
It sounds like a fairly obvious strategy, but so far, IPT has been "flying under the radar," as Banks said, carving out a lucrative niche and establishing a rock-solid reputation.
Today, the company occupies what used to be the former gymnasium at Fort Devens, and the space is littered with old reminders of the site's military past.
Polishing of the various machined bits that go into their products is done in an old racquetball court. The production line occupies the floor of a former 3,000-seat basketball arena. The old "Fort Devens" jump circle is proudly displayed on the wall with an American flag draped across it. An army-issue, height-adjustable punching bag is still bolted to the wall near the entrance.
Engineers are currently shoehorned into former barracks while renovation of the remaining racquetball courts into new office space is completed. If an employee desires, they can still shower in the musty old locker rooms.
The facility is the ultimate statement of function over form.
"They don't need the cherry wood office, it's not productive for them," said Jerry Quigley, executive vice president of North Middlesex Savings Bank in Ayer, Sandusky and Banks' personal banker. "Chris and Jim are not going to put money in some sort of fixed asset that doesn't produce. Cherry wood is nice to look at, but it doesn't make any money."
"We had to be profitable each and every day, every year," Sandusky said. "Someone recently asked me 'Are you in the black yet?' I've been in the black since day one. I've never been in the red. I can't afford to. So that forced a certain discipline on the company."
That discipline has led the duo to shun debt financing or venture capital, which may have made their road to success easier, but less independent, they said.
A New Paradigm
Sandusky and Banks got their start working for a large mechanical engineering and manufacturing company based in Philadelphia. The engineers were based on the 13th floor of a large downtown building. The manufacturing took place outside of Toronto.
"Not exactly next-door neighbors," Banks said with a chuckle. "Chris and I had worked on enough jobs together, and realized our paradigm on how to do this type of work differed from their paradigm. And we felt ours was better."
So much better, in fact, that they decided to go out on their own. With no money, no clients and no room for failure.
No problem.
The pair started out doing only engineering. The jump into fabrication would come in 2005 when they purchased a struggling mom and pop mechanical contracting company in Littleton called Rentec. They purchased all of Rentec's equipment, and hired all of its employees. The company was now both an engineering and production outfit.
Their first client was a former colleague, who needed help on a project.
"I went down on a Sunday and helped him out," Sandusky recalled. "And actually, I didn't charge him. I said 'No charge, thanks for thinking of me, have a great day,' and I walked out. Well, the next week he called me and said 'Hey, I have a project for you.' Just like that. And we've probably done for that customer, maybe 75 or 80 projects."
It didn't take long for the company to begin its rocket-fast growth after that. Shortly after establishing themselves in Sandusky's basement, they brought on David Gouveia, who now serves as general manager of the construction side of their business.
At first, Gouviea said his wife did not want him to join the fledgling company, claiming it was too risky. But Gouviea soon became part of the family.
"I used to have to go over to Chris' because that's where our printer was," Gouviea recalled. "I'd call up, and his wife would be there, and she'd just say 'Oh yeah, come on over, let yourself in.'"
Which is not to say that Gouviea doesn't enjoy the new digs.
He said he particularly enjoys seeing the old army punching bag getting a workout, usually with a printout of an employee's face taped to one side. Depending on what kind of deadline the company is under determines who's face it is. All in good fun, of course.
"Nothing's changed, if you knew them back then, they're the same people now as then," Gouviea said.
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