Adam and Steve Thomas | 06012026
Guests: Steve Thomas (President) and Adam Thomas (VP) - RJ Thomas Manufacturing / Pilot Rock
Host: Randy Chaffee
Producer / Director / Co-Host: Wes Wyatt
Episode Summary:
Steve and Adam share the three-generation family business story of RJ Thomas Manufacturing, founded in 1959 by depression-era WWII veteran RJ Thomas and his wife Doris in Cherokee, Iowa (northwest corner, 60 miles from Sioux City). Steve, second-generation president raised in the business since high school (starting in 1972), and Adam, third-generation VP and Steve's nephew, who began work around age 14 (circa 2000), explain their evolution from a small welding shop with five employees hand-unloading steel to a 90-person operation with advanced automation and robotics. The company manufactures park equipment under the Pilot Rock brand—grills, picnic tables, fire rings, benches, and custom fabrication for municipal parks and campgrounds nationwide. Two years ago, they purchased Pilot Rock itself (a house-sized historic boulder 15-20 feet high used by pioneers and Native Americans as a navigation landmark, now listed on National Historic Register), anchoring their brand to authentic Americana. They emphasize technology investment without losing their family-first culture, retaining employees for 40+ years, treating non-family staff as family, and collaborating with federal/state customers on product development (including 1,400 PSF snow-load-tested picnic tables for mountain recreation areas).
Key Takeaways:
- Three-generation family business defies statistics: second-generation success rates drop dramatically, third-generation minuscule—RJ Thomas thrives by treating non-family employees as family, competing on culture, not just price.
- Relationship-first sales model beats transactional, commodity thinking: factory-direct to loyal federal/state customers (50+ years), selective, non-exclusive reps, retail through Lowe's and Amazon—a mix of high-volume bidding (price-competitive) and direct relationships (relationship-competitive).
- Technology adoption preserves the family feel: automation/robotics reduces manual labor and increases safety while maintaining 50-year employee retention—younger employees see "this place is different" and return after exploring competitors.
- Customer collaboration drives product innovation: federal snow-load demand led to independent testing, resulting in picnic tables rated at 1,400 PSF (tested at 2.8x the spec requirement)—loss-leader R&D builds a moat competitors can't easily replicate.
- Lost opportunity cost calculus tips toward existing customer care: losing $500 to fix a long-term customer's problem is cheaper than losing their lifetime value and word-of-mouth referrals—never quantifiable but catastrophic.
Resources and Links:
Adam Thomas (VP)
RJ Thomas Manufacturing / Pilot Rock
Randy Chaffee:
https://www.linkedin.com/in/randychaffee/
https://www.facebook.com/therandychaffee
https://www.sourceonemarketingllc.com
Wes Wyatt: