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A Closer Look: Michael Gillen

President and CEO, Ryko Solutions Inc.

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While you were trying to decide whether to add the tri-foam and turbo dry cycles to your last car wash, Michael Gillen was thinking about new ways to amp up what used to be a pretty simple experience. Forty years ago, if you washed your car, you most likely used the garden hose at your house or a high-pressure wand at a commercial car wash that had all the glamour of a concrete fallout shelter. But times change. As cars added electric windows, heated seats and six-speaker stereo, car washes added brushes, went touchless, improved the brushes and evolved to high-end conveyer belts that take the vehicle through a premium system before workers hand-dry the auto at the end. Michael Gillen stepped into this sudsy world in September 2014 after working in executive positions at PepsiCo Inc., Dahlberg Inc., Bausch & Lomb (Ray-Ban sunglasses) and Johnson & Johnson, among others. His official biography notes that his strengths include working in capital-constrained environments, restructuring, manufacturing efficiency, turnarounds and cash management. Ryko, a mainstay in Grimes for decades, has expanded into the chemical side of car washing by buying MacNeil Wash Systems Ltd. of Barrie, Ontario near Toronto. We asked Gillen about the latest trends and developments in his industry.

It seems like there is a car wash around every corner. What separates Ryko Solutions? 
This is a very interesting place. There are a lot of companies that manufacture equipment. There are a lot of people who provide service to car wash equipment, especially distributors on a local level. There are a lot of people in the chemical business, everything from sophisticated companies like Ecolab to entrepreneurs who mix it in their bathtub. But nobody else  does all three of those, and no one has a national footprint like we do. The combination of that national footprint and the fact that we play in every subsector of the industry I think puts us in a unique position to dominate this industry segment. 

What areas do you cover?
We are a national company in the continental 48 states, When you count distributors, we have a presence in North America, Australia, Latin America and the Middle East. The MacNeil side, we sell 100 percent through distributors. The Ryko side, we sell direct in the states. Internationally, we use a distributor base.

How many employees do you have?
Ryko Solutions has about 475 employees, up from 400 in 2008. Of those, 280 or so are out in the field. There are about 66 people at (MacNeil Wash Systems in) Barrie (Ontario). The remainder are in Grimes. The Grimes workforce has been stable for a while at around 130.

What happens in Grimes?
We build car wash equipment. We put together electronic components. We have manufacturing, procurement, shipping and logistics, and chemical blending.

What trends do you see?
We’re seeing growth across the board. We offer in-bay models like you would see at a QuikTrip or 7-Eleven, and conveyor, or tunnel, models that are stand-alone operations run by investors. We have equipment for express tunnel washes too. 

Has your revenue grown?
In 2008, Ryko had $85 million in revenues. With the purchase of MacNeil in 2013, we now are a $120 million business.

Have you made any big deals lately?
We signed on as the single source for Hertz Corp., and as one of the preferred providers for Ford dealerships.

How much of an investment are car wash businesses?
Models range from $90,000 for a retrofit to $2.5 million for a full-length tunnel including facilities and land. We sell 400 systems a year. Eighty percent of our equipment, service and chemical business is in North America. 

What are you goals for the future?
We’d like to be the premier provider in the industry. You have to have a world-class service organization. You have to retain employees and provide them with superior training and the right tools. 

What do you do in your spare time?
I like to work out. I like to work the core, do Stairmaster and ellipticals and ride road bikes. I golf and snow ski.

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