Enterprise : LEARNING CURVE: BASZILE METALS SERVICE : Mettlesome Type : Entrepreneur Knows What It Takes
In the 20 years he has run Baszile Metals Service, a Los Angeles aluminum and metal parts distributor, founder Barry Baszile says he has learned the importance of good salesmanship, the value of a diversified client list and that affirmative action programs help competent minority-owned companies gain equal footing in the marketplace. Baszile was interviewed by Karen Kaplan.
I never had any doubts about my ability to succeed. I knew I was a good salesman, and if I can sell, then I can sell ketchup or aluminum.
My first sales job was with Hunt Wesson Foods. They gave me all kinds of awards, but I left because my manager told me I would never be promoted because “white guys would not work for a black guy.”
After the riots in 1965, many companies developed a social conscience. At least, they wanted to have a token black near the door. In 1968 I got a call from Kaiser Aluminum out of Oakland and they were looking for a black salesman in Los Angeles. The manager said, “We’re looking for the Jackie Robinson of the aluminum industry.” My manager said he was going to send me to Orange County to see if white buyers would buy from me. The second day I picked up a tremendous order. My career at Kaiser really exploded after that.
In 1975 I left Kaiser and opened Baszile Metals Service, the first and only black-owned aluminum distributor. I joined up with Reliance Steel & Aluminum of Los Angeles. Breaking into the good ol’ boys network is extremely difficult. It would not have happened if the chairman of the board of Reliance had not realized there were major government contracts out there with minority set-aside goals that were not being met because there were no blacks selling aluminum to major aircraft industries.
We would not advise people at first that we were black, and it would always surprise them once we got there. After a few minutes I was able to prove to them that I knew what I was doing, and they became very interested.
There’s no question: Without affirmative action, Baszile Metals would never have gotten off the ground. We were given a chance to compete because we were a competent black-owned company.
In 1976, right after we opened our doors, we were the successful bidders for a contract to supply all of the aluminum for the first four B-1 bombers. The morning President Carter canceled the B-1 bomber project, we had a couple of million dollars worth of aluminum on the floor. We were able to sell the aluminum to other customers, but it was a major setback for us. We were a brand-new company; we had won a major contract and then it was canceled.
In the 1980s, defense aerospace was 75% of our business, and now it’s about 30%. Transportation is now about 20% of our business, and commercial aviation is the rest. Based on our aircraft experience with Rockwell International, [the company] appointed us a distributor for their truck and bus brake parts. In 1993, we were the successful bidder to [supply] brake parts for all of the MTA buses in Los Angeles. The transportation sector was a natural transition for us because we knew that there would be funding with set-aside goals for disadvantaged minorities.
In June, the Supreme Court said you have to prove specific prior discrimination to have set-aside goals. Our 20 years of experience really allows us to go in and compete as a contractor regardless of set-asides. But I’m very concerned about the companies that come after us. Without some kind of affirmative action, major producers will have a tendency to go back to their historical methods of ignoring and discriminating against people who are not part of their network.
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On how the company got its start . . .
“There’s no question: Without affirmative action, Baszile Metals would never have gotten off the ground. We were given a chance to compete because we were a competent black-owned company.”
On the impact of eliminating set-asides for minority-owned businesses . . .
“Our 20 years of experience really allows us to go in and compete as a contractor regardless of set-asides. But I’m very concerned about the companies that come after us. Without some kind of affirmative action, major producers will have a tendency to go back to their historical methods of ignoring and discriminating against people who are not part of their network.”
AT A GLANCE
Company: Baszile Metals Service
Owner: Barry Baszile, 58
Nature of business: Supplies aluminum and other metals to defense and commercial aerospace companies. Also distributes metal parts to transportation companies and public transit authorities.
Location: Los Angeles
Other sites: Seattle and York, Pa.
No. of employees: 30
Annual sales: $15 million to $18 million
