Moving Metal

petitor, Earle M. Jorgensen, was also expanding into Phoenix. Imler had built up “an exceptional amount of goodwill” among potential customers in the area, but his effectiveness was limited since Reliance had no warehouse nearby. During a visit to Arizona, Gimbel had been intrigued by the possibil- ity of buying a local company, but the owner refused to sell. Consequently, he began considering building a new ware- house in Phoenix, which he estimated would cost $200,000. In June 1960, Imler reported that business conditions for metals products were favorable and recommended that Reliance build the warehouse in Phoenix. The following

revealed that, altogether, the investment in the Triax high-rise storage and retrieval system saved Reliance almost $800,000 during its first nine years. EXPANDING BY ACQUISITION Modernizing warehouse operations dovetailed with another and more ambitious goal: expanding the business geographically. Gimbel began by targeting Arizona, where Reliance sales agent Lyle Imler had been at work since 1958. A competitor, Ducommun, had already moved into Phoenix, built a warehouse, and was doubling capacity. Another com-

In the early 1960s Reliance expanded by acquiring facilities throughout California. This San Diego warehouse came into the company with the 1963 purchase of Drake Steel Supply Company.

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