When opportunity knocked 10 years ago, Garett Cupples was hesitant to answer the door.
The owner of what is now called GenTex Oilfield Manufacturing Inc. had
received word that a man from China wanted to speak with him about oilfield equipment.
It was the kind of opportunity Cupples was looking for, but also the kind of prank his buddies were likely to play on him.
“The first thing I thought was, “It’s a gag, because of what I’ve done to other people,” recalled Cupples, who once put a friend’s snowmobile up for sale – unbeknownst to the friend.
He arranged to meet with the visitor anyway, and was rewarded with a deal that set the stage for subsequent sales to places like Russia, Kazakhstan, Brazil, Columbia, India, Indonesia, Malaysia, Gabon, France and Germany.
Today, about half of GenTex’s business is international.
Hot oil units and pressure trucks – used to pump heated fluid into piping, tubing, casing or tanks in a variety of applications – are the company’s speciality.
But it manufactures other oilfield equipment and provides related training, servicing and supplies.
“Basically we build truck, trailer or skid-mounted oilfield equipment,” summed up Cupples.
Employing an average of 35 to 40 people, GenTex operates out of Belich Business Park was of Red Deer. Several years ago, it attracted attention when it built the biggest hot oil unit in the world for shipment to Prudhoe Bay, Alaska.
Prior to 2002, GenTex operated as General Hot Oilers Inc., with a related oilfield services company called General Hot Oil and Pressure Service Ltd. But its origins go back to 1968, when Cupples’ father Wes started General Hot Oil and Chemical Cleaning Ltd. in Red Deer.
“I remember as a kid he would get up in the morning and drive to Kindersley (Sask.) or Pincher Creek for the day and then drive back. There was very few hot oil units around the province.”
Cupples’ began working for his father in the early 1980s and by 1988 had obtained his own hot oil unit.
Over the next seven years, he gradually took over the business.
Cupples also began designing his own equipment. He felt manufacturers lacked hands on experience when it came to field use.
“They couldn’t actually drive it out to a well site and pump down well and show somebody how it was supposed to run.”
There might, he reasoned, be a good opportunity for a fabricator who knew the industry well.
This was confirmed when China came calling.
Cupples prepared drawings for a hot oil unit and arranged for the components to be sent to China. Eventually, he travelled overseas to see the unit through to start-up.
“There were a few complications. For example, PTOs turn different on the trucks there, so we couldn’t get the hydraulics to work.”
The only payment he accepted for his design work was the trip to China.
“It wasn’t really about the money,” he explained. “I wanted to see this thing work.”
Convinced of the viability of a specialized manufacturing company, Cupples set up General Hot Oilers. General Hot Oil and Pressure Service continued to look after the servicing business.
Five years ago, General Hot Oil and Pressure Service continued to look after the servicing business.
At about the same time, Cupples sold General Hot Oil and Pressure Service, which continues to operate locally as General Oilfield Services Inc.
The Texsteam acquisition proved to be a real coup. The business had long been a leader in the production of heaters, the primary component of hot oil units, and it came with more than 5,000 engineered drawings.
“There was a lot more technology and history in what they were doing than what we were doing and what our competitors were doing,” said Cupples.
Texstream’s sales history and customer list also proved invaluable, opening the door to new contacts in North America and beyond.
Serving an international market is exciting and rewarding, said Cupples. But it also means a lot of paperwork and having to adapt to different languages and cultures.
In Kazakhstan, for instance, the country’s communist past has left many people reluctant to think independently and make decisions.
“What can take a day or two here can take a week over there,” said Cupples.
The secret to working abroad, he suggested, is keeping an open mind. It’s also important to provide support where needed.
“Just to sell a piece of equipment overseas isn’t god enough. A lot of these countries have developing oilfields and they need more than just the unit, they need the service.”
In less than 20 years, Cupples has gone from operating one hot oil unit to manufacturing the equipment for export.
This transition has brought challenges.
For one thing, instead of rolling up his sleeves and doing the work, Cupples has had to learn to be a manager.
“It’s a huge hurdle, and I still have difficulty with it,” he acknowledged.
“I’m very hands-on; I like to be involved in everything.”
But he recognizes that the ability to delegate is essential for growth, and has learned to trust his team.
Cupples has also had to adjust his mindset form service jobs with a quick turn around to manufacturing projects that can take months.
“Unfortunately, patience is not my greatest virtue, “he said, adding that he also tends to be a little to enthusiastic when designing equipment for customers.
“I’ll say, ‘Yes, we can do that,’ and then I go back and realize what I just committed to.”
“I may have just created a ton more work.”
A believer in goal-setting, Cupples arranges for his management team to embark on a planning retreat every fall.
“We review where we’ve come from, and we set three-year goals and then one-year goals.”
He’s also a proponent of continuing education – whether it’s reading business books and magazines, or taking advantage of teaching resources like Red Deer College.
He sees the value of networking with other business people, and thinks companies have an obligation to support their community.
As for success, Cupples doesn’t think financial achievement is the proper measuring stick. Instead, he said, it’s important to do something you like and are passionate about.
“I truly believe if you’re doing something you enjoy, the rewards come later.”
