Page 156 - Peterson 85 Years and Going Strong

Eric’s vision and Duane’s leadership found a way to grow this company in the midst of the worst economy Peterson has seen since World War II, using very little capital.
– John Krummen, executive vice president and general manager, Peterson Power Systems
(L-R) Jeff Goggin, Duane Doyle Sr, and Eric Martin at Dry Creek Landfill cogeneration plant near Medford, Oregon in 2007
The turning point came by way of a key relation- ship. Eric Martin was a people-person by nature and a superb communicator. He was able to build a great rapport with Dave Gerard, Navistar’s VP of dealer development. “Dave came to bat for us,” says Bagwell. “He put his name on the line for us with a commitment backed by Navistar that Pe- terson would meet its goals.” Martin was able to engage Gerard in the larger vision by mapping out his goals of where Peterson was, where it was headed, and how he planned to get it there. “From there, Eric convinced Duane [Sr.] that we could pull this thing off without spending any money,” says Bagwell. “We could, in fact, pull this off and make money.”
In August 2010, Navistar officials flew out from Chicago for a feasibility study. Six months lat- er, Peterson Power’s back building on Teagarden Street in San Leandro was being remodeled and outfitted for the trucking business. Peterson’s truck operations were morphing from a wholesale busi- ness model to a retail dealer. “The International
dealer that we’re in the middle of becoming will be a full-service International parts, sales, and ser- vice dealer, selling hundreds of trucks a year,” said Martin back in February 2011, two months after Navistar gave the thumbs-up. “We’ve got to diver- sify. The truck market has not been affected nearly as much by the recession as our Earthmoving Di- vision. We need something in our portfolio that helps the company get through these downturns.”
In June 2011, Peterson Trucks Inc. (PTI) official- ly opened for business as an International Truck dealer, with a territory from Gilroy up to Hum- boldt County, California. Today, PTI operates as an International sales and repair dealer in Califor- nia at its San Martin, San Leandro, Santa Rosa, and Fortuna locations. In addition, twelve Peter- son locations provide bumper-to-bumper parts and service for all makes and models of trucks. In November 2018, Peterson added another piece to its International coverage with the acquisition of Brattain International in northern Oregon. Peter- son now offers sales and product support coverage for International Trucks across its three-state foot- print—including rentals, lease trucks, and buses.
“Eric’s vision and Duane’s leadership found a way to grow this company in the midst of the worst economy Peterson has seen since World War II, using very little capital,” says John Krummen, then VP (now executive vice president) of Peterson Power Systems. “Within six months we grew it to one hundred employees and had a business plan to reach $100 million in the first five years.” PTI reached that goal in 2017 and hit $110 million in 2018. In 2019, PTI grew to $164 million.1
In the spring of 2011, John Krummen stepped in to lead the Peterson Trucks launch in Martin’s ab- sence. Six months earlier in December 2010, Eric Martin had gone in for colon cancer surgery. “Eric was determined to make this truck business hap- pen,” says Krummen. “He was a big part of it right
1 This figure includes the acquisition of Brattain International in November 2018.
154 | PETERSON: 85 YEARS AND GOING STRONG