CEO adapts through philosophy and humor
Mustang Cat CEO Brad Tucker is approaching this year’s business environment with a mix of philosophy and humor as his company grapples with the pandemic and its resulting impact on oil prices and other businesses.
“We won’t be in anyone’s Top 10 next year,” said Tucker, whose family-run business has long been the exclusive Caterpillar dealer in the Houston area. “You won’t have to call me.”
Mustang Cat sells, rents and offers parts and service for Caterpillar equipment that can range from a $20,000 mini-excavator to a D11T bulldozer that can cost $2 million or more. Founded in 1952 by Tucker’s maternal grandfather and former Houston mayor Otis Massey and his father Frank Tucker, Mustang Cat has steadily built its business in recent years.
The company has complemented its long-term foundation of strong engine sales to the region’s oil industry by shifting some of its focus toward equipment rentals to capitalize on expanding road construction in the area.
As a result, Mustang Cat’s revenue reached a record $1.6 billion in 2018 before receding about 8 percent to $1.5 billion last year, which still placed it at No. 10 among Houston’s largest private companies by revenue. “The good news for us is that we were able to grow parts of the business that weren’t correlated to oil and gas, so we offset some of that downturn on the engine side of the business,” Tucker said. “We just didn’t make up all the ground.”
Having previously projected 2020 revenue to fall by more than 25 percent to about $1.1 billion, Tucker said it could decline further, to about $850 million. His company has cut its workforce by about 20 percent to about 720 people.
Additionally, Mustang
Cat has adjusted its operations, rearranging its parts department’s layout and having a contactless pickup system to allow for greater social distancing.
Tucker says it’s a balancing act of sorts because much of the company’s culture is based on face-toface interaction, adding that he regularly speaks with other longtime Caterpillar dealers around the country to exchange ideas on COVID-related protocols.
That said, the company’s nearly seven decades of experience navigating the notoriously volatile oil and gas market gives Tucker confidence in his company’s future.
“This is the sixth time I’ve been through one of these downturns,” Tucker said. “I don’t lose any sleep about being able to survive this.”