Geoff Doster, American Pacific Industries Inc.’s (API) new chief operating officer, discusses API’s North American strategy, which includes the roll-out of new products and more.
MTD: As you settle into your new role, how would you describe the state of API's business in North America? What are the opportunities and challenges you see?
Doster: I see API’s business in North America as having an extremely solid foundation with a lot of potential for growth. There’s room for API’s presence to grow, but we really want to leverage our existing distribution network while making sure we explore new markets.
One of the biggest opportunities is growth in our consumer product offerings. We’re really well-positioned to capture share in terms of developing the X Comp brand, which... grew from our Gladiator brand. New product offerings will really help us. The other part is continuing to strengthen and develop relationships with our key partners.
From a challenges standpoint, we’re faced with a lot of similar challenges the industry is faced with. Number one would be general economic uncertainty... and making sure we adapt our strategies to respond. The other will be continued freight and logistics volatility. Managing that from a cost standpoint and also delivery will continue to be a challenge for the industry. And finally, the overall competitive landscape. We all know that the North American market is highly competitive, with well-established brands and cost-sensitive customers. When I look at the overall state of the business, it’s very promising for us, with opportunities to grow and expand.
MTD: How would you describe the evolution of API's North American product base?
Doster: API has been marked by what I call key strategic growth and diversification. Where do we really focus? For us, it’s growing in terms of product diversification. We’ve done very very well focusing not just on mainstream offerings, but also niche offerings. We’ve seen growth in off-road, SUVs and custom cars and we make sure we’ve kept our product offerings to (keep pace) with those segments. We also operate differently in terms of how we develop products. We are focused on improving technology and design and making sure we incorporate more advanced materials.
There are two key things, to date, that API is focused on: our collaboration with our manufacturing partners and our customers – making sure we’re developing products that are tailored to our customers’ needs in North America. That engineering focus for us has been key. But it’s also been the feedback from our customers, which has led us to have continuous improvement in new products.
MTD: Are there plans to introduce new products to the North American market in 2025? Where do you see opportunity, from a product segment standpoint?
Doster: In short, yes. We have plans to introduce a number of new products. Our next six months are going to be very busy. We’re actually now just going into production, rounding out two new X Comp lines that will be hitting the states at the beginning of next year. The X Comp line has focused on light truck and SUVs and some niches. We’re launching two new lines that will help us round out the rest of our product offering. We’ll have full coverage of the touring, HP, CUV and SUV product segments. And the new products will have the latest in terms of design and in terms of technology, as well, and also will have sizes that will appeal to the entire consumer segment. We’ll have a full brand complement.
Second, we’ll launch the Pegasus brand. The brand will launch in early-2025 and represents a significant step in expanding our product line. It will target all product segments. We see opportunity in all consumer segments, from off-road and performance to even developing all-weather as a segment, as well.
MTD: Where are API's North American products currently manufactured?
Doster: Currently we work with eight manufacturing partners and we're manufacturing in Thailand, Cambodia, Vietnam, China and India.
MTD: Describe API's dealer/distribution strategy in the U.S. Is the company looking for more distribution/dealers?
Doster: API’s dealer and distributions strategy is designed to ensure broad market coverage. We utilize distribution channels in the U.S. and Canada, including container programs, but we also are looking to expand our truckload and LTL (less-than-truckload) shipments. We have distribution centers in southern California, Dallas and also in Carlisle, Pa.
API works extremely closely with our dealers and distributors because their markets and knowledge of those markets are what really helps us. We’re actively looking to grow our network of dealers and distributors, but the goal is to make sure we achieve increased market penetration. It’s very key for us that alongside expanding our network, API remains committed to deepening its relationships with current dealers and distributors.
MTD: What's your vision for API in the U.S., both short-term and long-term, and what can we expect to see from the company in 2025?
Doster: When I look at our vision, it really revolves around driving sustainable growth and establishing a stronger brand presence, while consistently making sure we’re meeting the needs of our customers.
Short-term, number one is the expansion of the X Comp brand. The goal for X Comp is to become a go-to option for enthusiasts and customers who value performance. Pegasus will be a significant introduction for us. This line will cover the consumer segments... while also diversifying our portfolio of products. Third, (the recent expansion of API’s sales team) underscores our commitment to expanding our customer reach. We have an outstanding team and with additional resources, we feel we’ll be very well-positioned. And the last - from a short-term perspective - will be our increased focus on consumer engagement. We’ll continue to ramp up some of our marketing efforts to connect directly with consumers.
From a long-term standpoint, number one is what I call broader market penetration. We do a very good job in the U.S. and we want to make sure we’re growing and setting trends by the innovation and service we offer. We want to be able to make sure we continue to invest in product development.
The second one would be digital transformation. We want to continue to make sure we’re leveraging technology to improve our capabilities and customer service. The final thing, long-term, because it’s paramount for us, is continued growth of our strategic partnerships. Since I joined the company, I’ve found how deep those relationships run.
