Entrepreneur persists through fire and bankruptcy
SASKATOON, SK—For some, recycling is a means of saving the environment. For Shane Olson, it's his very livelihood.
This spring the former banker and founder of Saskatoon's Shercom Industries celebrates 15 years of manufacturing products from recycled rubber.
When the rubber first hit the road in 1993, it wasn't smooth going. "I was too naive to know what I was getting into and too stubborn to quit," says Olson when he recalls starting the business with his cousin, a grain trader. Using rubber buffing—a byproduct of tire shops—as well as crum rubber—another manufacturing by-product—the men set about producing paving stones, parking curbs and speed bumps.
Yet with little technology and an uninformed market, it wasn't long until they were forced to take second jobs. "We looked at each other and decided to commit our business to the Lord every morning and thank Him every evening," says Olson.
For the next 87 days they made sales. Around the same time they were asked to produce an automotive ramp which ended up gaining nationwide distribution through Canadian Tire. "That was our first success story," says Olson.
When sales reached a plateau in 1996, however, and Olson's cousin left to work the family farm, Olson had to decide if this was really something he wanted to pursue.
"I thought it was a reasonable opportunity to invest in equipment which would recycle tires. It was my dream to be fully integrated to make our own recycled products," he says.
Olson purchasing a tire shredder in 2000 and moved the plant to a bigger building to accommodate it. However, he says, "The shredder never worked and I couldn't maintain all of the overhead. It was an exceptionally stressful time."
Eventually Olson bought another tire shredder. Although it worked, things were still not going well. In the summer of 2001 Saskatchewan's tire recycling program faltered and Olson's revenue was cut by 45 per cent, effectively bankrupting the company.
Olson was ready to shut down when a friend offered to partner with him and make Shercom fully independent. Olson agreed and they moved to a 32,000-square-foot facility north of Saskatoon and worked 20-hour days for the next three months preparing the plant.
Two days before the company was ready to re-open, Olson received a call in the middle of the night from the RCMP. The plant was on fire. "They have no knowledge as to how the fire started," says Olson.
It took a few months after the fire for Olson's determination to return, but by the spring of 2004 Olson had a third partner and a new facility. Today Shercom employs between 25 and 30 full-time staff, and is expanding to meet mushrooming demands.
"Last year was our best year ever, and this year looks like it will be better than last," says Olson. "Our markets have grown between 40 and 50 per cent."
He refuses to be daunted. "We've had a number of things happen where we just have to give thanks to God: 'Thank you God for bringing this customer and this opportunity.'"
This past Christmas Olson and his partner, Lavern Arndt, took their families to Haiti where they supplied a rural community with clothes, toys and school supplies.
"Whatever we go through in our life, I think God is first and foremost concerned not necessarily with the events happening, but about our relationship with Him," says Olson, a member of College Park Covenant Church.
"It's not about ownership, it's about stewardship. Saying 'God, this is your business, and for whatever reason, you've called me to lead it. So please grant me wisdom today to manage it and look for ways to glorify you.' "
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