Sign Company Grows With National Exposure

[Erik Sine]

Sign company grows with national exposure

San Antonio Business Journal - Monday June 12, 2006 - Mike W. Thomas

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Signs of success: His focus on national accounts spurs sales.

Gary Walton grew up in the sign business. His grandfather started a sign business in Corpus Christi in 1934 and Walton began working there when he was just 12.

But in 1978, when Walton was 25, some investors bought out the family business and did something very fateful for his future career: They fired him.

Two years later that business had gone under. But Walton had been forced to go out and start his own business in the interim and thus Walton Signage Corp. was born. Walton's new business thrived and in 1985 he decided to pack it up and move to San Antonio to be closer to his then largest customer -- Luby's.

Today, Walton Signage has grown into a multimillion-dollar company with more than 100 employees. In just the past three years, the company has grown by more than 300 percent. In 2003 it had annual revenues of $5 million. In 2004, revenues had gone up to $10 million. By 2005 it had grown to $16 million and this year they expect to top $22 million.

"It has been like riding a wild bronco," Walton says. "We've been blessed with a good economy and being in the right place at the right time."

National accounts

The explosive growth of Walton Signage has been due mainly to aggressive sales efforts as the firm shifted from being a custom designer working for local clients to working almost exclusively on repetitive national accounts, says Ken Schrang, vice president of sales and marketing for Walton Signage.

Some of Walton's national clients that have been added in the past few years include Old Navy, Wells Fargo, Mattress Firm, Firestone, Sherwin Williams and Starbucks.

"We have worked hard to keep up our level of quality and improve productivity through lean manufacturing techniques," Schrang says. By "lean manufacturing," Schrang says he means Walton Signage focuses on enhancing the manufacturing steps that add value to the product and reducing the steps that add cost.

Two years ago Walton Signage moved into a new manufacturing facility at 3419 E. Commerce St. with about 90,000 total square feet. More than 90 percent of that is for manufacturing space.

"We manufacture all of our own signs here," Schrang says. "We primarily do exterior signs and electrical signs."

Walton says years of making lots of sales calls around the nation has finally begun to pay off for the company. Those sales contacts helped the company to leverage itself into the national account business, first with the now-defunct Builders Square in 2002 and then with Old Navy in 2003.

"Old Navy was a milestone for us," Walton says. "Today, we are a true national sign company with 90 percent of our business coming from our national accounts." Walton adds that his company still does a little custom work, but that is mostly reserved for existing customers who have been with the firm for many years.

Reimaging niche

Walton says that a big help in breaking into the national accounts market was working with some national clients on reimaging campaigns. This is when one company buys out another and has to change signs all across the country relatively quickly. Walton Signage was brought in to help when Worldcom became MCI and then again later when MCI was absorbed by Verizon.

Walton says his company is beginning to reap the benefit of years of work on those reimaging jobs and persistent calling on potential clients.

"Success is all about our people," Walton adds. "We pay a lot of attention to training and developing a strong workforce so that we can be profitable."

Schrang, who joined Walton Signage in 2003, says there is intense margin pressure in the sign business, with customers always wanting better value. When there is an increase in commodity prices such as steel and plastics or when freight costs go up due to the rise in gas prices, margins get squeezed even tighter.

"Demand for signage is great right now," Schrang says. "Most businesses have too many providers chasing too few customers. But recently this has been a robust business with great prospects."

Challenging business

Walton says the sign business can be a difficult and challenging business, but it is always interesting.

"You don't come in and do the same thing everyday," he says. "One day you may be building a type A sign and the next you could be doing something entirely different. The difficulties associated with maintaining quality control and getting orders to the customers on time makes it a challenging business, but it has been good for us."

In recent days, the company has added Quiznos, Cold Stone Creamery, EZ Money and Petco to its list of national clients.

But even with its rapid growth in recent years, Walton Signage is still considered a mid-tier firm in the industry.

"There are a few giants out there and a lot of little custom providers, and we fall in the middle somewhere," Walton says.

Walton says he loves being in San Antonio and says it was a good choice when he chose to move here 20 years ago.

[alukard123]

I'm very happy for them, they are a great company to work for and their signs are very well made.

[platinum1]

Great story

[Brian]

Yes good story!!! Sounds a lot like my story .....except for the being fired, making millions, getting a big new building and all. I was 25 once though so I guess I do have something in common with him!!!! LOL

Edited January 28, 2013 by chubbygumby