A Candid Conversation with Rob Smith from CultureShoc’s Into The Storm Leaders podcast
Allow us to introduce Rob Smith, a serial entrepreneur and the executive chairman of Acutec Precision Aerospace. Episode nine of our corresponding podcast series brings this maverick’s story to the forefront, showcasing a tale that weaves through the colorful streets of Spain, the industrial heartlands of Akron and Des Moines, and settles in the nurturing community of Meadville, Pennsylvania. Here, Rob’s entrepreneurial spirit shines as he invests back into the town that cradled his company’s growth, with ventures ranging from a coffee shop and yoga studio to an intriguing distillery.
In this post, we’ll share Rob’s remarkable transition from a dishwasher to an aerospace precision powerhouse. You’ll hear about his turbulent but strategic evolution as Acutec’s leader and who takes up the mantle behind him. Let’s embark on this journey with Rob and discover the impact of visionary entrepreneurship and unwavering commitment to community and growth.
Rob Smith and the Origin Story for Acutec
Acutec Precision Machining’s origin story begins with a series of happy accidents. Having never left Meadville after graduating from Allegheny College, Rob Smith’s college friend aspired to start a machining company. Around that same time, Firestone was acquired by Bridgestone, presenting Rob with the financial opportunity to invest in his friend’s endeavor.
The name Acutech, which comes from “Accurate Technology,” was a creative suggestion by Smith’s wife on the front porch of a friend’s home. Despite the company’s later focus on precision machining, Rob’s background was diverse, spanning from expertise in agricultural tires—including the various specialty tires required across the U.S.—to European tires and even dishwashing. This eclectic expertise, however, had little to do directly with the future endeavors of Acutec.
Smith’s path took an unexpected turn when he returned to the U.S. from Spain, leading to a stint in Des Moines, Iowa. There, he was involved with a company that developed a chip blaster, which is a high-coolant delivery system for machining. Despite the promising product, Smith faced challenges that ultimately pushed him to move again.
Conflict with his business partner prompted a bold decision—Smith decided to take control of the company, driven by the belief in his own ability and concern for his financial ties to the company.
With everything on the line, Smith invested his resources, including his children’s college funds, to buy out his partner and assume leadership of Acutec.
The first thing he did was learn blueprint reading, recognizing the need to understand every aspect of the machining work he was now overseeing. The late-night study sessions paid off when he steered the company through rocky waters, including the potential loss of their largest customer, Lord Corporation.
In Rob’s first week as the sole owner of Acutec, Lord Corporation alerted Rob of their intention to find a new supplier, citing quality and delivery issues as the primary reasons for leaving. At the time, Lord Corporation made up 80% of Acutec’s business. So, Smith committed to a turnaround.
His pledge to revitalize operations and enhance product quality wasn’t just a hollow promise; it was a commitment that propelled Acutec from being a precarious supplier to a robust, multi-million-dollar partner to Lord Corporation. His continuous improvement strategy fostered a culture that transformed customer complaints into loyal patronage, illustrating the power of resilience and adaptability in business.
Pulling Back the Curtain on Acutec’s Transfer of Power
Rob’s journey from acquiring Acutec in 1994 to contemplating his step back for his daughter Elizabeth’s leadership reflects a calculated and forward-thinking approach. Within four years under Smith’s leadership, Acutec had stabilized and was on an expansion trajectory. It was during this phase of rapid company growth Smith started to consider the company’s long-term succession plan. With his older daughter, Elizabeth, showing interest in the business, unlike her younger sister, the seeds for a family-run enterprise’s future were sown.
Elizabeth’s journey begins with an internship involving digitizing the company’s archives. Her knack for improvement and efficiency became evident early on, and as she ventured into higher education, Smith made sure to nurture her involvement with Acutec.
But while Elizabeth’s journey starts and ends at Acutech, it took a turn for the better thanks to some advice from Bill Tillotson of Heffron Tillotson. Bill advised Rob to push Elizabeth to leave the nest. Why? To foster a well-rounded perspective and resilience.
In Bill’s words, “Let them go out in the world, let them cut their teeth, let them make their own way, let them do their own thing, let them get their head kicked in a few times, let them find out that they’re not perfect.” This advice resonated with Smith, who then subtly encouraged Elizabeth towards experiences that would broaden her outlook and skillset.
Elizabeth’s journey then took her to Charles River Associates and its aerospace division. Her growing passion for the business was cemented at the Paris Air Show, leading her to pursue an MBA in manufacturing at the University of Michigan.
Her post-graduate career at United Technologies further solidified her passion for the industry, and by 2013, Elizabeth was ready to join Acutec. Finally, back at Acutec, she began her successful career in the family business by taking on strategic projects and overhauling the quality assurance department.
The ownership transition began in earnest in 2015-2016. Leveraging a tax loophole for a significant transfer of wealth, Rob entrusted Elizabeth with the majority share, a move that symbolized not just a transfer of ownership but trust and belief in her vision for Acutec’s future.
Acutec’s Core Philosophies
As Elizabeth continued taking on more leadership roles within Acutec, she worked with Rob to clarify the company’s core philosophies. Here they are.
1. Always Be Lucky
Rob Smith’s first philosophy at Acutec is grounded in creating one’s luck. Luck, as Rob explains, is a trifecta of preparation, recognizing opportunity, and decisive action.
Preparation means equipping yourself or your business with the necessary knowledge and tools. Identifying opportunity often involves seeing potential where others see problems—in other words, finding opportunity in adversity (more on that later). And finally, act on your opportunities. This ensures that you capitalize on the moment when it arises.
2. Wake Up Paranoid
The second philosophy borrows from the mindset of Intel’s Andy Grove. The idea is to “wake up paranoid,” which Rob interprets as the drive to seek improvement constantly.
In Rob’s words, “Every day, you have to get better at what you’re doing. Every day, someone is going to try and figure out how to take your business from you. You think you’re the best there is. Somebody else out there is trying to figure out how to do it better.”
It warns against complacency, urging a daily pursuit of excellence and vigilance in a competitive landscape where others constantly compete for your place in the market.
3. Embrace Change
Originally phrased as a brusque acknowledgment of life’s fluctuations, Elizabeth Smith refined it to “Embrace change.” This philosophy is particularly salient in the aerospace sector where Acutec operates—a field that demands a cautious approach to innovation. Here, change is embraced thoughtfully and strategically to enhance operations while upholding stringent safety standards.
4. Turn Adversity into Opportunity
The final philosophy evolved from a stark life lesson to a more optimistic viewpoint. “Turn adversity into opportunity” encapsulates the essence of transforming challenges into chances for growth.
Phrased initially as “Life is unfair; learn it while you’re young,” this philosophy fosters a positive approach to obstacles, which can lead to significant breakthroughs and progress.
Rob emphasizes that these philosophies are vital to Acutec’s operations. In an industry that is conservative out of necessity, they provide a framework for proactive adaptation and continuous improvement, ensuring that the company remains agile and forward-thinking despite its commitment to tradition and safety. These guiding principles have not only shaped the company’s culture but have also contributed to its resilience and success.
What Rob’s Up to Now
After passing the torch to Elizabeth, Rob has embarked on a new chapter, affectionately dubbed “Rob 2.0.” No longer occupying the office that marked his leadership at Acutec, Rob has turned his attention to revitalizing downtown Meadville. His goal is to invest in the community that invested in him and is the home to his family business.
Rob 2.0 began with purchasing older buildings and giving back to the community that supported Acutec’s growth. His efforts have already seen the successful launch of the French Creek Coffee Shop, housed in a beautifully renovated turn-of-the-century building.
But Rob didn’t stop there; another building acquisition led to the creation of a unique space that combines a computer store, a yoga studio with elegantly restored ceilings, and an office space that Rob now calls his own. This space, which was neglected for half a century, now thrives with a dining room, living room, kitchen, cigar lounge, and a deck, all designed by Rob himself.
The rejuvenation of Meadville continued with French Creek Framing and Fine Arts, a new venture enhancing local culture. Furthermore, a conversation with Michael Reed, the operator of the coffee shop, sparked the inception of Cussewago Creek Distillery. Because of its success, Rob invested in yet another building, this time to accommodate the distillery and a tasting room where Michael’s crafted spirits—gin, vodka, rums, and the special Rob’s Rye whiskey—are savored by many.
Rob’s vision extends to the old Race Street Lumber property, a historical site he plans to transform into Cussewago Square—a pedestrian haven featuring the Meadville Community Theater, an artist co-op, and space for distilling brown whiskey. This future destination will invite the community and visitors alike to enjoy outdoor patios, concerts, and recreational activities, firmly establishing a legacy that intertwines Rob’s serial entrepreneur legacy with his dedication to community enhancement.
Rob Smith’s Parting Wisdom
As Rob Smith’s story comes to a close for today, he leaves parting words on leadership skills and more for emerging leaders and young professionals. His advice is straightforward: “Work your ass off.” He encourages professionals not to shy away from going above and beyond traditional expectations. It’s the extra mile that often distinguishes one’s work ethic.
Initiative is another cornerstone of Rob’s philosophy. He advocates for proactive engagement—seeing what needs to be done and doing it without waiting for directives. This kind of initiative often garners attention and recognition from peers and superiors. Rob acknowledges that mistakes are a natural part of this process, reinforcing the idea that to make mistakes is human, and more importantly, it’s a sign of effort and action.
Lastly, Rob champions the concept of self-promotion. His personal narrative from his days at Firestone illustrates this principle vividly. By creating an environment that reflected his passion for international research, he ensured his interests and skills did not go unnoticed. Within a year, his dedication to promoting his career path paid off, leading him to the role he aspired to.
Rob’s story is a testament to the power of making one’s aspirations known. Rob’s final thoughts serve as a beacon for all emerging leaders looking to forge a path in their career: work diligently, seize the initiative, learn from mistakes, and boldly promote your aspirations.
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