Mary Kariotis Demonstrates That Lessor Is More…

Following the 2008 downturn, Mary Kariotis chose a new path for Merrimak and the company flourished.

Merrimak president and CEO Mary Kariotis believes that while you should certainly celebrate your successes, you can also never rest on your laurels.

“My main focus is to bring on board new Fortune 500 and equivalent-sized customers, and I’m devoted to that. But I also oversee how the overall company runs, identify new markets, while delegating to our managers and fine-tuning where necessary.”

A diverse supplier, Merrimak Capital Equipment Leasing & Resale is a full-service equipment lessor, managing the entire equipment life cycle. When Merrimak began in 1992, the company relied on independent contractors as part of its business model. This worked well until the 2008 economic downturn. However, in 2009 Kariotis recognized the need for a change and took the company in a different direction.

“Though the leasing business can be somewhat recession proof, our model wasn’t sustainable. I wanted more direct contact with customers and to avoid engaging independent contractors under the Merrimak name. We completely restructured, phasing out the independent contractors while allowing them to retain their legacy customers. We basically started over from scratch. The new approach targeted Fortune 500 companies and their equivalents with all accounts completely controlled by Merrimak employees. It was a risky move, but we gained traction quickly. Today we have more than 100 active Fortune 500 clients.”

In 2009, Kariotis gained certification as a woman-owned enterprise from the Women’s Business Enterprise National Council. Merrimak has grown to become the industry’s largest full-service independent diverse lessor providing Tier One diversity spend credit. With this certification and her unique business development talents, Kariotis pursued her strategy. A pivotal element in that approach was Ingersoll Rand. Kariotis explains when she first met Ingersoll Rand representatives at a supplier conference.

“Ingersoll Rand and its strategic brands like Trane and Thermo King, needed someone, ideally a diverse supplier, to lease material-handling equipment. Merrimak identified significant savings, provided competitive solutions and ultimately was awarded the business. Over time, we have continued to develop a very close working relationship and now hold a substantial portfolio managing the full equipment life cycle for their material handling assets. While Merrimak is highly efficient and very competitive, our relationship also speaks to supplier diversity support from Ingersoll Rand. They have a fantastic program that meaningfully engages diverse suppliers. This is evident throughout the organization and the initiative begins at the executive level with John Evans, vice president of global procurement.

“John’s team has developed and implemented a preferred supplier program in which top-tier suppliers directly interact with the company’s senior management. Each year, Ingersoll Rand holds a supplier conference and chosen suppliers are given the opportunity to create high-level business relationships. John also appoints a supplier council for a three-year term during which 12 suppliers meet with him and his senior management on a quarterly basis to strategize on process improvements and the state of the industry. I am honored and humbled to be included. These meetings allow for close contact with executive management from premier brands like Thermo King and Trane, and allow suppliers to hear firsthand the goals and challenges from upper management. This is invaluable! What’s most impressive is that the supplier diversity program is an extension of their internal commitment to foster an inclusive workforce and ensure opportunity for all. That steadfast commitment led to their signing of public acts and pledges—“Paradigm for Parity” and “CEO Action for Diversity and Inclusion.”

True to her philosophy, Kariotis also believes that diverse suppliers have a duty to come to the table with more than just a commitment to diversity.

“Whether you’re a diverse supplier or not, you should identify a need and provide a solution that’s better than the status quo. Don’t simply rely on the fact that you’re a diverse supplier. Diversity is not a reason to win business. Always bring something to the table. For example, in working with Ingersoll Rand there is, of course, an incumbent supplier in every category. Merrimak improved processes, saved capital, brought innovation, and made things more efficient. We provided a better solution than the status quo and earned the business!

Ingersoll Rand appreciates Merrimak and Kariotis’ commitment to excellence, competitiveness and achievement.

“Merrimak is a premier supplier and that’s largely due to Mary’s incredible business savvy, creativity and shared passion for improving overall operations in order to deliver the best value and service to our customers. These are traits all of our top-performing suppliers possess,” said Global Procurement VP Evans. “Our supplier diversity program is an extension of our internal commitment to foster a diverse and inclusive workforce, and grounded in the fact that these businesses are a natural part of the global business environment. Additionally, in line with our 2030 sustainability commitments, the program increases opportunity for all, strengthens economic mobility and boosts the overall quality of life for these business owners and their families.”

So, where does Kariotis look to take Merrimak next?

“Our goal is to have a billion dollars of assets under management in our portfolio, and we’re on track to do that within the next 18 to 24 months. We will continue to grow and add 10-12 Fortune 500 accounts annually while nurturing and expanding our current customer base. Right now, we are currently the largest and leading truly independent lessor providing Tier I diversity spend credit, and we are tracking to be one of the top three independent lessors industry-wide.”

Given her belief to never rest on one’s laurels, Kariotis and Merrimak are right on track to achieve that goal.