Dražen Benčec (FABEMA METALI): There is no elevator to success, you have to take the stairs

In challenging times, it is equally challenging to find a company that can boast successful operations. Fabema metali is the best example of how good business, based on care for employees and focused on their constant development, can overcome all external challenges. The solid foundations of good business cannot be built overnight. Fabema metali, which deals with the sale of black metallurgy products, has been creating a successful business environment that endures for 31 years, and the company and its operations are growing and developing. Their success is recognized by long-term partners, successful companies from Croatia, and some of the largest construction sites in this part of Europe, as confirmed by the list of ‘1000 largest’, where Fabema metali ranked 652nd. How better to learn the details behind the success of this company than firsthand, in a conversation with long-time director Dražen Benčec.

Recently, everyone is talking about the big quit, that is, more and more people are quitting and do not want to work. This problem is also faced by large tech companies like Google and Amazon, where the average working life is only one to two years. On the other hand, in your company, the average working life is longer than seven years. What do you think is the reason for this?

– The key is the way you view your employees. For us, employees are the greatest strength and value of the company. If we have a quality employee, we will do everything to keep them with us for as long as possible. Both good and tough times come and go. What remains are always people with the right values. We can boast of several employees who have been with the company almost from the very beginning. In that, we see our wealth. As a family business, we strive to create an atmosphere of family, community, and cooperation. It should be noted that employees generally spend more time at work than with their families, so it is essential that they feel at home within the company. The same goes for partners. We build relationships that enable long-term business cooperation. The key is communication – we strive to be open, correct, and to do everything within set deadlines, and to jointly solve obstacles if we encounter them.

More than 90 percent of your warehouse is covered, which is a significant advantage in this business. How would you say your company differs from others? What is the secret to your success all these years?

– Yes, we have a covered warehouse, which helps us better protect our material and not be disturbed by adverse weather conditions. We work on fast and clear communication, quick and accurate loading and unloading, quality of materials, competitive prices, and overall service without which partnership cannot even be imagined today. I think the secret is that we are constantly moving forward, monitoring the market, adapting processes, and improving our services. Our existence is focused on partners, and our mission is a satisfied customer. They are our purpose. We strive to be service-oriented, and it is essential for us that our partners see that we care for them and how much we value them. Today, in turbulent times of change, this is not an easy task, but we work on this mission every day. We are fully committed to them.

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Raw material prices, including in your industry, are skyrocketing. Do you think this trend will continue, and in your experience, what most affects the market situation? How does your company cope with this?

– The market situation is challenging. One must remain calm and focused on opportunities. That is why we are constantly looking for something new – new solutions and new possibilities. We are opening up to new markets and seeking new resources to ensure that our customers do not feel significant changes. We are aware of this need and invest a lot of energy into it. Dynamically, very dynamically. Global trends are constantly changing. Crises, wars, shortages, opening new markets, etc., all affect changes and their speed. Unfortunately, we have recently encountered all of this. We monitor it and strive to always have enough assortment for our customers, regardless of good and bad circumstances.

Do you follow the trends in your industry on the global market? Are there any good practices you have noticed that you are now applying or planning to apply in your business?

– We invest a lot of energy into this. We want to provide the best service for our partners and educate our employees, providing them with the best conditions and tools for work. We organize workshops, training, visit fairs, organize seminars, and renew our fleet by replacing diesel machines with electric ones. Continuous learning is the only way to progress and be better. We have made the transition from the first generation of founders to the second, which now leads the business. We are preparing the third generation to take over and manage capital and assets, regardless of whether they will actively participate in the operational part of the business or responsibly and diligently continue to manage the capital. Personally, I am a strong opponent of asset liquidation and business sales. My vision is to establish a foundation, involving the third generation under strict rules that will be regulated by protocol. We are doing this with renowned experts who have extensive experience in this area and continuously attend their workshops, drawing experiences from similar family businesses about the inheritance transition process.

Your father founded the company back in 1991. So, the industry has been around for a long time, but times have changed drastically. New technologies, the internet, digitalization have come… How have you adapted, and what modern trends are you applying in your business?

– The company has been successfully operating for 31 years. To get there, you cannot take shortcuts. Simply put, there is no elevator to success; you have to take the stairs. To maintain success, changes are necessary. The world, including the business world, is moving forward at a great pace, and we keep pace with trends and changes every day. We are introducing new things to be faster and more competitive. We have adapted our business to new technologies, opened a web shop for customers, ensured constant availability of our staff, shifted product communication to digital channels, and introduced the ISO standard. We continuously develop software programs to have accurate and precise information for each of our partners.

Why have you now introduced the ISO standard? As far as we know, the quality of your products and services has been unquestionable so far.

– Partners and potential partners of Fabema metali come from various European countries, and the ISO standard is an excellent tool for aligning regulations that are essential for business, a way to highlight our quality in new markets, and it provides credibility. We recognize it as an opportunity to be even better and for our partners to be even more satisfied with our service. Given that we are focused on environmentally friendly business practices and believe in the quality of our products, the ISO standard is an addition that confirms all of this.

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And finally, in which direction do you see the further development of the company and the entire black metallurgy market?

– It is difficult to predict anything in the long term. The fact is that the market exists, and the need for material will always be there. One must be present, have enough stock, monitor price trends, be fair to partners, and meet obligations on time. I am focused on the positive and am not afraid of change. I see every challenge as an opportunity for new ideas and collaborations. We are very curious. Passion and love are the greatest drivers of the world and life. If you do not have that, you cannot progress in business either. We constantly set ourselves new and bigger goals. We try to remain calm, fair to our partners, both when times are tough and when they are good. We and our partners are together the Fabema family.