SouthEastern Petroleum Systems

Led by PEI's new president, SouthEastern Petroleum Systems keeps service simple.

SouthEastern's 15,000-square-foot headquarters in Charlotte, North Carolina, contains warehouse and office space.

At 10 years old, Blair Shwedo dreamed of growing up to be a racecar driver; zipping around the track at top speed, gracefully navigating dangerous curves with precision and agility, taking risks at every turn. As this year's PEI president and the president of SouthEastern Petroleum Systems, Blair Shwedo, in many ways, is living out his childhood dream.

It began in 1991, when Shwedo, then a successful real estate developer, took a ski trip with a friend—a banker for a small petroleum equipment company in Charlotte, North Carolina, whose owner was preparing to retire. On the drive home, when the company casually came up in conversation, an intrigued Shwedo wanted to know more. As the company's banker, Shwedo's friend knew that the markets were strong, and despite its small size, the company's numbers were promising. That company was SouthEastern Petroleum Service.

“It was fate,” says Shwedo, who by the end of the ski trip had made a decision that would change his life.

For Shwedo, it was SouthEastern's solid foundation and strong vendor relations that appealed to him, a young businessman looking for a challenging new venture. “It was a small company in the shadow of several large equipment houses,” he says. “SouthEastern wasn't the big guy, but the previous owner worked hard to find a niche.” In researching the petroleum equipment market with some friends familiar with the industry's financials, Shwedo determined that it was an industry poised for growth. “I felt good about where the market was headed,” says Shwedo.

So good, in fact, that on June 5, 1992, Blair Shwedo purchased SouthEastern Petroleum Service, changed the name to SouthEastern Petroleum Systems, and for the once-aspiring racecar driver, it's been full speed ahead ever since.

COMPANY SNAPSHOT President: Blair Shwedo Year Founded: 1967 Year Joined PEI: 1975 Headquarters: Charlotte, North Carolina Branch: Columbia, South Carolina Remote Office: Atlanta, Georgia Employees: 28 2008 Sales: $6 million Web Site: www.sepsusa.com

Find a Need and Fill It
Despite being new to the industry, Blair Shwedo was no stranger to the business world. After graduating from the University of North Carolina at Chapel Hill in 1979 with a degree in business administration, Shwedo began his career at Union Carbide Corporation in industrial chemical sales. During his tenure, Shwedo worked his way through the ranks, eventually earning the title of account representative for Carbide in Detroit, Michigan, where he gained exposure to the distribution industry that would prove useful later in his career.

It was also at Carbide that Shwedo met his mentor, Curt Brown. A senior sales representative when Shwedo was a junior sales rep, Brown handled some of Carbide's largest accounts, and took Shwedo along on each of his sales calls. “Curt and I spent a lot of windshield time together,” Shwedo recounts. And it was on one of those lengthy road trips that Brown gave Shwedo some advice that would stay with the young salesman for decades. “Curt told me that there were two secrets to success: One is to always have a positive attitude. The second is to find a need and fill it. It sounds so simple, but it absolutely makes a difference.”

That straightforward philosophy helped SouthEastern Petroleum Systems grow from a small, relatively unknown company in Charlotte to a thriving business with locations in three states and a loyal customer base throughout the Southeast. “We work hard to define the customer's need, then fill that need with the products and resources we have available to us, as opposed to just selling products and services off the shelf,” says Shwedo. “That's what makes us the company that we are.”

The parts counter at SouthEastern's store in Charlotte

History of Service
Even before 1992, SouthEastern was a company with a rich history in the petroleum equipment industry. Founded in 1967, SouthEastern Petroleum Service was the first service company to become a member of PEI. With a focus on service, SouthEastern also specialized in warehouse distribution, serving the petroleum market in North and South Carolina.

When Shwedo took on the business in 1992, he inherited a staff of three: two salespeople and one office manager, a small size that mitigated the initial risk of jumping into a new venture. “With a team of just three people, the company seemed very manageable, and the risk wasn't excessive,” Shwedo says. But it wasn't long before that small staff began to expand, courtesy of the well-timed buzz created by the change in ownership. “We were the new kid on the block, and there was an excitement going on. People saw the potential in SouthEastern and wanted to work with us.”

Today, SouthEastern's management team has seen that potential come to fruition; the company now operates offices in Charlotte, North Carolina; Columbia, South Carolina; and Atlanta, Georgia. SouthEastern employs a diverse group of 28 industry professionals that Shwedo calls “exceptional.”

Reaching New Heights
With two years at SouthEastern under his belt, Shwedo set his sights on expanding the company's service offerings. In 1994, the installation division was created, and two years later, the company's size doubled when SouthEastern acquired the service division of a nearby business, expanding the company's footprint beyond the Carolinas into Georgia and Virginia. In August 2008, the company opened its branch in Columbia, South Carolina. With an existing customer base in the area, SouthEastern's branch location, approximately 85 miles south of the Charlotte headquarters, allows the company to better serve its southernmost markets. The 5,000-square-foot facility in Columbia has also increased the company's warehouse capability, a direct response to customers' needs. “Our customers in that area requested that we have a stronger presence there,” says Shwedo. “It's working out great for us and for them.”

Every 10-year-old's dream: Blair Shwedo gets behind the wheel of a stock car at Lowe's Motor Speedway in Charlotte, where he reached a top speed of 140 mph.

Since those first few formative years, SouthEastern has thrived on the strength of its three divisions: service, installation and warehouse distribution. Split evenly between the retail and commercial markets, SouthEastern's core products and services cater to customer demand. “We're a versatile company; we can quickly redirect our resources to handle the unique needs of our customers. It can swing substantially from one year to the next depending on customer demand, but there is a good balance between service, installation and distribution.”

For that balance, Shwedo credits SouthEastern's employees and their industry expertise. “Our employees have been willing to increase their knowledge of the laws, standards and technologies, and I cannot stress how much of our success is attributable to their talent and dedication.” Shwedo adds, “SouthEastern has surpassed all my expectations.”

Relationships Drive Success
Despite being surrounded by some of the largest equipment companies in the region, SouthEastern has carved out a comfortable place in the industry with one simple credo in mind: “We don't try to be everything to everybody,” Shwedo explains. “We'd rather build strong relationships with a small group of loyal customers than have a big group of customers we can't work with individually. Relationships drive our business.”

Up Close and Personal PEI President Blair Shwedo talks about the determination of the motoring public, junk mail, chick flicks and more in the President's Spotlight.

That personalized approach not only helps SouthEastern to transcend the competition, but it also allows the company to consistently put the customer first. While SouthEastern's technical expertise spans the industry, it's the staff's ability and willingness to listen that customers value most. “It's easy to assume we know what a customer wants, but that's not always the best way to find a solution,” says Shwedo, who explains that SouthEastern's approach to customer service requires listening, understanding and guidance. “The customer knows exactly what he needs to accomplish, but he doesn't necessarily know what equipment will get him there. It's our job to understand that need and make an intelligent decision on how to meet it.”

Ready for Change
According to PEI's new president, 2009 will be a turning point for the industry. “Petroleum is no longer the only source of energy,” says Shwedo. “Non-petroleum products will begin to replace traditional applications, and although many of these fuels and lubricants will be stored and dispensed in the same basic equipment, there will be critical differences.” For Shwedo, the one tool that will help PEI and its member companies survive the change is knowledge. “We have to read a lot, converse with each other and learn what those subtle differences are. We need to keep our finger on the pulse of the market and determine what new fuels are here to stay.”

An aboveground fueling and lubricant system is being installed at a commercial site in South Carolina.

Alternative fuels, PCI compliance, secondary containment regulations, diesel exhaust fluid and EVR requirements are the issues that Shwedo believes will be at the forefront of the industry in 2009, all issues that will require PEI members to think outside the box.

For the boy who once dreamed of racing cars and speeding to victory, the past 17 years have been a wild ride worthy of the race track. And for the 2009 PEI president, it's a ride that shows no signs of slowing down. “There's a fast-paced feeling in this business, because it's always changing,” says Shwedo. “Regulations change, technology changes, customers change.”

One thing that won't change, however, is Blair Shwedo's readiness to face 2009's challenges head on, and with the same enthusiasm he once had at 10 years old, when he dreamed of zooming past that checkered flag. “Every day in this business presents a different challenge,” he says with a smile, “but that's what makes it fun!”

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The PEI Journal • First Quarter 2009 • Volume 3, No. 1 • Contents are Copyright © Data Key Communications, Inc.
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