E.P. Arnold, who saw a future in the automobile parts industry, started Arnold Motor Supply in 1927. As he watched the popularity of the automobile increase, he knew that replacement parts would be needed. Although he did not know much about automobiles, Mr. Arnold built a box for the back of a 1927 Chevrolet, and some mechanic friends helped him select about $65 worth of parts that garages would need. He tacked up a price list and traveled town to town in Northwest Iowa. Thus, with $300 savings and a $200 loan, our company was born. In 1929, Mr. Arnold expanded the operation by purchasing a piston grinder. In 1931, he opened the first branch auto parts store in Marshall, Minnesota with Paul Byers as his first partner and branch manager. In that same year, the Spencer fire destroyed the original store. Despite advice from bankers and warning of the shaky retail environment Mr. Arnold opened his third store in Sheldon in 1932. From the beginning, Mr. Arnold believed that people would work harder as owners than employees. With this belief he built the business to ten stores and ten partners over the next twenty years. In the early 1950’s, competition was keen. The unique pay structure that Mr. Arnold had developed meant he was able to recruit top people. As competitors tried to hire away his valuable employees, Mr. Arnold decided to take his partnership program which had worked well with store managers, and extend it to include twenty of his top sales and shop people. To attest to the foresight of Mr. Arnold, many of his original formulas and pay-plans are still in use today. His philosophy is reflected in his statement, “ You build a business with people, not with buildings of brick and stone...”. In 1960, Mr. Arnold built the auto parts warehouse in Spencer and named it The Merrill Company after his son, Merrill Arnold. In the beginning, The Merrill Company sold only to Arnold Motor Supply stores. They now supply company-owned and independent stores throughout the five states they serve. By 1966 we had grown to include thirteen stores and the warehouse. In that year, Mr. Arnold opened the partnership to all employees. Recognizing the opportunity ownership presented, everyone joined. Today our partners include many second and third generation owners. When an employee is invited to join the partnership, their minimum investment is just $500, which was all that Mr. Arnold had when he started the company. Growth continued through the 1970’s. When we joined the Auto Value group in May of 1983 our store count was at twenty. When the partnership purchased Automotive Paint and Equipment, a stand-alone paint and body supply store in Illinois in 1996 we had thirty three stores. In that same year a light industrial coatings division was formed called The Arnold Group Commercial Performance Coatings, which sells industrial paint to light duty manufacturers. In 1999, Specialty Sales, an automotive parts distributor in Omaha, Nebraska, and their 10 stores were purchased. These stores took on the Auto Value identity. In 2003, we purchased Industrial Paint Supply (IPS) an industrial coatings distributor in Omaha which is now located in the Specialty Warehouse. We also added our first manufacturing division. Midwest Cylinder Head, which rebuilds engines and engine components, is based in Nevada, Iowa. In June of 2003, the Arnold Motor Supply store count grew with the addition of a store in Milford, Iowa. That same year, we opened the Undercar Division in Omaha that services independent and program group installers that specialize in undercar repair and maintenance. In 2006, we opened another Auto Parts Warehouse (APW) in Rock Island, IL. We also started Auto Refinish Solutions that sells and services heavy-duty body shop and industrial painting equipment The goal of The Arnold Group of Companies is built upon the concept of increasing sales and profits through training, marketing, and improving operational efficiencies. Because people still buy from people, we strive to set our team apart from those of our competition. We continually make an investment in our people so that they are the best that they can be. The founder of our company, E.P. Arnold, was fond of stating that you build a business with people, not with bricks and mortar. This attitude is a tenet of our constitution on customer service. Since people are vital to our organization and our continued success, we feel our future should be heralded as one that sets a new course. Together our products and people touch the world. The Arnold Group of Companies today: 6 divisions 3 auto parts distribution centers covering stores in 5 states 46 company stores and 35 independent Auto Value and non-aligned jobbers 22 full service machine shops and an aluminum head and engine rebuilding facility 255 delivery vehicles driven over 1,000,000 miles per year Servicing over 10,000 wholesale customers many of them daily Represented by over 65 sales team members and 150 counter people Calling on more than 7,500 top installers weekly In markets reaching over 3.5 million end users Our Divisions: Arnold Motor Supply Arnold Motor Supply was started in Spencer, Iowa in 1927 by E.P. Arnold and has grown to become one of the largest partnerships in the United States with stores in Iowa, Minnesota, Nebraska, Illinois and Missouri. We have grown from a single store and now have 50 company-owned stores and serve more than 100 independent Auto Value and non-aligned jobbers.  Twenty-one of the company stores have complete machine shops. The Arnold Group of Companies is the parent organization and is a member of The Aftermarket Auto Parts Alliance, which includes Auto Value and Bumper-to-Bumper Auto Parts Stores.  The Alliance is an industry leader in aftermarket auto parts distribution. The Merrill Company In the 1960s, the Arnold Motor Supply stores numbered 10.  Having a good business model in place, the demands of the marketplace indicated that a warehouse operation would improve profitability.   Subsequently, a 27,000 square foot building was constructed on farm ground in south Spencer.   The Arnold Motor Supply warehouse was later required by the government to change their name.   E.P. Arnold decided to call the warehouse The Merrill Company, after his son. Demand for parts delivered in a timelier manner, and parts proliferation, dictated the increase in inventory both at the stores and the warehouse. The Merrill Company in Spencer has continued to grow in size from a mere 27,000 square feet to 94,000 square feet today.  This is one of the very few warehouse operations that have inside loading docks which allows for the comfort of our warehouse team members to work in inclement weather. Our delivery fleet travels over one million miles a year delivering parts to our customers overnight. In 1999 with 36 Arnold stores, the company acquired an automotive parts warehouse called Specialty Sales of Omaha, and ten of her stores.  Those stores are called Auto Value Parts stores and they have become an intregal part of our team. Since technology has permeated the auto parts distribution system, we use scanners for inbound/outbound freight and for customer check out at the stores. We embraced on-line ordering for our customers, and we have converted all of our stores to GUI hardware.  We use our web sites to sell products that promote our business and we use the Web for voice-over IP.  We also have embraced video conferencing for training and meetings, and have video conference points throughout our company. We are unique to the aftermarket because we are a Partnership.  Over 165 of our 550 associates are owners of this company. Many of the pay schedules developed by our founder over 40 years ago are still in place today.  The family was important to Mr. Arnold and our current leadership has embraced the same principle of taking care of our team members.  Accordingly, many of our partners and associates have been with us for most of their working lives, and now their children are partners and associates. Ranked in the Top 20 of warehouse distributors by Aftermarket Business magazine, The Arnold Group of Companies has forged new ground for continued growth in sales and profits.  Our 65 sales and tech people led our market area in growth of our Certified Service Center program, and continue to be the source for new and progressive technical training for our professional technician customers. We are considered the leader in paint and body supply sales, and in machine shop sales, for our marketing area.  All in all, the warehouse division of our company has capitalized on our business model to see double-digit growth in an admittedly stressful business climate. Midwest Cylinder Head We have been in the machine shop business since 1927. As opposed to most auto parts store chains, we find it to be profitable. Twenty-one of our forty-six parts stores have full machine shops.   Together with Midwest Cylinder Head, our engine-rebuilding factory in Nevada, Iowa, we have enjoyed a sound reputation for producing a quality product at a fair price.   Midwest Cylinder Head can repair and recondition your cracked or otherwise damaged aluminum and cast iron cylinder heads and cylinder blocks to like new condition.  Save yourself hundreds of dollars. Don’t lose valuable time searching for a good used part, we have it. We specialize in exchange and custom cylinder head and cylinder block welding, reconditioning and repair, both in aluminum and cast iron, gas and diesel applications.   We repair agricultural, automotive, truck and heavy equipment engines and related parts, including, but not limited to, rock shaft housings, transmission housings, and various cast iron welding. We provide our services to individuals, machine shops, auto/truck/diesel/agricultural/heavy equipment repair shops, and engine remanufactures, from the smallest to the largest applications. Our customers range from the United States military to antique tractor enthusiasts whose attention to detail rivals that of most ardent hotrod aficionados. This division has capitalized on the use of electronic marketing that has brought in customers from all over the world. If no one else can fix it, we probably can. Industrial Paint Solutions What started as recognition of an underserved market, our industrial coatings division has grown since our partnership formed the first unit in 1996 in Spencer, IA.  We called it The Arnold Group Commercial Performance Coatings, which focused on selling industrial paint to light duty manufacturers around the area. A combination of spectacular sales and management people and timely delivery, the division grew to the point that in 2003, we purchased Industrial Paint Supply (IPS) an industrial coatings distributor in Omaha which is now located in the Specialty Sales Warehouse. These two units make up what is now called Industrial Paint Solutions.  They cover a trade area of portions of five states and are now considered one of PPG’s largest industrial coatings distributors.   They focus not only on the traditional liquid coatings, but also have become experts in powder coating, aircraft, sign paint, and specialized military coatings. Some of their customers include airplane rebuilders, large and small fleets of trucking companies, manufacturers, The U.S. Army, and sign companies. The goal of Industrial Paint Solutions is built upon the concept of increasing sales and profits through training, marketing, and improving the operational efficiencies of our customers. Because people still buy from people, we strive to set our team apart from those of our competition. We continually make an investment in our team members so that they are the best that they can be. Auto Refinish Solutions What started as an opportunity to represent a company that specialized in auto body repair tools has expanded to be an important part of the Arnold Group of Companies team. Auto Refinish Solutions was formed to sell and service spray booths to body shops and manufacturers in the three-state area around Sioux City. The division was started in the backroom of the Arnold Motor Supply auto parts store in Sioux City. The business has now been moved to our new building in Spencer, Iowa. Our manufacturer authorized techs can install and maintain GFS Spray booths as well as other brands. We distribute Air Flow Technology filtration media to the automotive, industrial, and aerospace industries. We also offer a full-range of dust and fume extractions systems. See us for lifting equipment, gun washers, and solvent recyclers as well as equipment to meet all of your compressed air needs. Paint Body Equipment Our growth as the Arnold Group of Companies continued when the partnership purchased Automotive Paint and Equipment (APE), a stand-alone paint and body supply store in Illinois. APE supplies body shops in and around the Quad City area and has fostered a reputation that has set standards for quality and service.