Taking your business to the next step

Small, locally owned businesses are the fabric that keeps the American economy strong, but what happens when a local company wants to grow to other markets? The delicate balance between staying true to your roots while expanding your business can be tricky; however, one Cockeysville-based business has shown that it can be done.

N.H. Yates & Co., Inc. (www.nhyates.com), a third-generation family-owned business, has been providing products and services to the HVAC and plumbing industry since 1949. Serving as a manufacturing representative and distributor to contractors, distributors and engineers, N.H. Yates has traditionally served the markets of Maryland, Eastern Pennsylvania, Virginia, Delaware, Washington, D.C., and New Jersey out of its Cockeysville headquarters and satellite offices in Richmond, Va., and Pottstown, Pa. The company's emphasis has always been on water - heating, moving and storing it - as a representative of manufacturers of boilers, plumbing specialties, water heaters, tanks, HVAC and steam specialties, pumps, and accessories, among others. But recently, N.H. Yates wanted to expand internationally.

"We've always had a national presence, and in the past couple of years, we've worked with companies in New Orleans on flood pumps and other water-related products as a response to Hurricane Katrina," says Jim Yates, president and CEO. Yates bought the company in 1996 from two uncles and has spearheaded its growth from $15 million to $80 million in annual sales during this time. Yates says that recently the company has expanded to serve the international market. "We really got into the international business by accident. We had a customer with a huge problem in Dubai. We found a solution in India and with Provident's help were able to secure the business and open a new and unexpected business opportunity that continues to grow."

"We've worked with some oil companies in Iraq. Additionally, we make water booster systems, which are required for any building over five stories in height. We've sold these to companies in Moscow, Singapore, Saudi Arabia, Korea, as well as across the United States," says Yates, noting that the company has several subsidiaries and sister companies, including Hydronic Modules Corp., Yates Energy Management Corp., and FM Firestopping.

"Provident Bank has been a big part of this growth," says Yates, adding that the company switched its banking to Provident Bank in 1997. "We needed a bank that was a perfect fit. We're not a "Mom and Pop" shop, and small banks were unable to grow with us; however, large banks couldn't be bothered with us. Provident Bank was a perfect partner - they treat us well like a small bank but stepped up when we had growth opportunities."

"N. H. Yates & Company is a premier client of Provident Bank. This means that our relationship with the company is multi-faceted and includes providing a line of credit necessary to finance receivables and inventory, treasury management services, term financing for the purchase of the company's headquarters in Cockeysville and even private banking services for the company's executive team," says Dave Patzer, vice president of commercial banking. "N.H. Yates is a great example of what Provident Bank can do by providing a variety of services to a customer that has grown from a small business into a true middle market company. Longstanding family-owned businesses, such as N. H. Yates & Company, go through several business cycles, and these companies need a bank that will stick with them.

When the company wanted to expand internationally, we were also able to help," says Patzer. "N. H. Yates was new to the international market, and the company's first venture ended up being rather complicated, meaning they needed a trade letter of credit to be able to buy direct from a foreign company, with which they had no prior experience. They turned to Provident and relied on our extensive experience in this area. We devoted a substantial amount of time on the letter of credit to make sure that our customer was protected. Any company's first step into the international market can be tricky, but this one went off without a hitch. Now, company management is more comfortable with international opportunities and are ready to grow and expand in this arena."

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