International Alliance Group: Entrepreneurial Firm
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By Kate Burrows   
Thursday, 01 May 2008
smc International Alliance Group, Houston, Texas
“IAG’s focus is to be a true general contractor acting as a partner and an integrated team player with our customers in completing these projects,” says Paul Switzer, vice president of corporate development.


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Although International Alliance Group (IAG) was formed only 12 years ago, its roots date back to parent company Triten Corp.’s inception more than 60 years ago. This extensive industry experience has allowed IAG to develop a unique position in the market by providing general contracting services for refinery turnarounds and projects, says Vice President of Corporate Development Scott Pappas.

When the company was formed, founders John Arnoldy and Gary Baumgartner had the vision to fill a void in the market for technology-driven, fast-track projects.

“At the time, they saw that FCC unit revamps weren’t moving forward because they cost too much, and the larger firms were not set up to perform these turnarounds in a short amount of time,” Pappas says.

“That is what started our unique business model to perform smaller projects faster and at a lower cost,” Pappas continues.

“The main feature of our business model is that we don’t have the same approach, and therefore the same overhead that the average engineering contractor has. The majority of our staff specializes in project management, procurement, project and cost control, inspection and safety services, and we subcontract out other pieces of a project.”

IAG developed its niche successfully, and is still waiting for competitors to follow suit.

To this day, no other company in the industry has focused purely on delivering the business model IAG brings to market, the company says.

“We don’t believe we have any true competitors that offer the same services we do,” Executive Vice President of Operations Paul Switzer says. “Most other companies try to offer project management, but are really engineering contractors focused on selling engineering man-hours and keeping their shops full.

“IAG’s focus is to be a true general contractor acting as a partner and an integrated team player with our customers in completing these projects. We have no interest in selling man-hours or creating change orders on projects.”

Strong Roots
Parent company Triten Corp. was founded in 1946 as a remanufacturer of pump parts for the oil industry, the firm says.

It quickly grew its product line to include products for welding and machining, with an emphasis on alloy steels.

“The demand for an improvement in the welded hardfacing that was used to resurface working parts led the founder to introduce the then-new, patented process for hardfacing called bulkwelding,” the company explains.

“This established the company as a market innovator and leader in welded chrome and iron hardfacings.”

After growing its expertise by making strategic acquisitions, the company formed International Alliance Group.

“This new engineering subsidiary [was developed] to execute efficiency enhancement projects for certain key oil company refining units,” the company explains. “Showing significant success in its first years of operation, IAG is positioned to take advantage of oil companies’ ongoing outsourcing of key services.”

Today, Triten consists of two subsidiaries: IAG and Alloy Products Group.

“Alloy Products Group utilizes direct sales and marketing as well as agents and representatives around the world,” Triten explains.         

“Manufacturing and distribution points are located in Australia, Canada, the United Kingdom and the United States.”

The company performs a range of work in engineering and fabrication services, hard-metal coatings and welding. “Alloy Products Group is the market leader in its sector, and is the largest applicator of hardfacings in the world.

IAG says the benefits of operating as a division of Triten are tremendous. “IAG has benefitted from Triten’s history and technical expertise,” the company explains. “Since its inception, IAG has gained a reputation for its project development and management services, as a result.

“Its revamp projects are driven by economic investment analysis and by a solid contracting philosophy. This contracting philosophy focuses on single-point responsibility and profit-at-risk contracting.”

smc International Alliance Group, Houston, Texas

A Unique Business Model
IAG’s legacy in the industry allows the company to enjoy longstanding relationships with suppliers and subcontractors, as well.

“We have alliances with subcontractors that are considered to be the most-efficient in their fields, which, together with our in-house expertise, allows us to execute projects more efficiently than other contractors,” Switzer asserts.

“We are positioned to minimize the impact of the present shortage of labor, and the skyrocketing prices of materials in the present market.”

To overcome the industry’s most-challenging obstacles, the company has successfully developed ongoing relationships with both repeat customers and its supplier partners.

“We’ve been able to capture a more efficient total pool of resources than what is currently being applied to projects,” Switzer explains.

Small Company Success
IAG’s small-company atmosphere offers many advantages, as well. The company’s ability to respond quickly to customer concerns and requests has become an important differentiating factor.

“We don’t have a lot of bureaucratic procedures and requirements here, and we can turn on a dime for our customers and respond to their needs,” Switzer says. “Because we’re a smaller company, we are able to stay very attuned to our customers’ needs.”

The company ensures it hires only the best of the best, mainly through referrals, according to Switzer. However, for key personnel and members of the management team, the company actively recruits experienced professionals in the field.

“This is a smaller industry than many people think it is, and the key people in the niche we’re interested in are very well known,” Switzer says.

Many of these experienced industry professionals are drawn to IAG’s entrepreneurial spirit and culture, Pappas explains.

“Most of the core people working here come to IAG for this reason,” he says. “We’re open to and encourage change, which is unique because many companies are not receptive to working outside their comfort zones. We encourage our employees to be entrepreneurial and creative in all that they do.”

Switzer says the company is determined to employ the industry’s most-talented people, and he believes IAG is well on its way to achieving this goal.

“We believe that when you encourage your people to embrace change and continuously improve, you’re going to have superior results,” he says. “We’ve certainly found this to be true for IAG.”

 
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