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Rudy Arispe Fernando Reyes Written by: Rudy Arispe
Issue: November 2008 | NSIDE Business
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Fernando Reyes was a 15–year–old sophomore at HarlandaleHigh School when he sold uniforms and business suits atKline’s Department Store for 75 cents an hour. Unbeknown tohim, that simple job would prove to have an impact on his futureas a flourishing entrepreneur.

“The biggest advantage I got working at Kline’s was the abilityto learn how to run a small business,” Reyes says during aninterview at the San Antonio Hispanic Chamber of Commerce.“I’ve always been a person who likes to learn, so I would observeand listen and offer to help with whatever I could do. Becauseit was a small store and a family–ownedstore, the owners allowed me to domore than sell.”

“I did inventory, helped with payrolland ran clothes to the tailor. I learnedhow tough it is to run a business, howyou have to watch costs, how you haveto watch inventory and how to treatcustomers because they’re your livelihood.”

Reyes, 58, would agree that thoseformative years have been a blessing.Today, he is president and owner ofReyes Industries Inc., a manufacturingbusiness that produces aluminumcots, canvas canteen covers and ammunitionvests for the military froma 60,000–square–foot facility on theSouth Side. He is also CEO and chairmanof Reyes Automotive Group, aTier–1 supplier of plastic parts and carpetingfor the Toyota Tundra pickup.

Reyes, however, didn’t initially intendto be a business owner. His goalafter graduating from Harlandale in1968 was to land a job at Kelly Air Force Base and become ahigh–level government employee. “I remember my mother tellingmy dad, who was a butcher, that he should get a job at Kellybecause those who did were better off financially than others livingon the South Side,” he says.

After signing up for the Navy Reserves, Reyes did get hiredat Kelly as a mechanic’s helper, tearing apart carburetors for aircraftand then working on B–52s during the Vietnam War. Later,when Kelly had to reduce its workforce, he learned he was to belaid off. But his misfortune proved to work in his favor.

He spoke to an acquaintance in human resources who suggestedReyes seek work outside Kelly if he wanted to further hisgovernment career and recommended Reyes call the DefenseContract Administration. Eventually, he was hired as a qualityinspector with the administration in Dallas, working on thelanding gear for the first space shuttle. He also found time inthe evenings to earn a business administration degree from theUniversity of Texas–Arlington.

“I learned a lot about government contracting because Ihad no idea of doing business with the government,” he says. “Ilearned how government works and of the purchasing power ofthe government.”

In 1978, Reyes left to work for the Department of Housingand Urban Development, auditing cities awarded communityblock grants, as well as recruiting Hispanicsinto HUD. Later, he was anintern for the agency’s DevelopmentIntergovernmental ManagementProgram, where he spent a year inWashington, D.C., working on specialprojects for the White House, Congressand other federal agencies. Duringthis time, he obtained a master’sdegree in public administration fromthe University of Southern California’sWashington, D.C., campus.

“One of the things that changedmy whole perspective as to what Iwanted to do is when I got to WashingtonI met people who were doingbusiness with the government. I metHispanics who were doing businesswith the government,” Reyes says. “SoI started to learn from these consultants,engineers and small businessowners that there was an opportunityto develop a business doing businesswith the government. I knew the laws,the regulations and how to get contracts.The only thing I didn’t have was money.”

Undeterred, Reyes kept his dream of starting his businesson the backburner while going to work for the Internal RevenueService. Because employees worked five days one week, andfour days the next, Reyes devoted his free Friday to developinghis business plan.

Serendipity always seemed to shine on Reyes, as it did whenhe visited a friend in Laredo one day. “I saw tremendous opportunity,although there was 35 percent unemployment anda lot of businesses had shut down,” he says. “Because of my jobwith HUD, I had met the mayor before. After a long weekend Isaid, ‘This is where I need to open my business because there isa need here for jobs.’ Not in Dallas because no bank was goingto talk to me. I had no money. I had never run a business.”

After meeting with the mayor of Laredo and city officials,Reyes convinced them he could bring in government contracts.“The whole city got behind me,” he says. “They opened opportunitiesfor me with the banks. I had lines of people who were willingto work for me. It was easier to start a business there than in Dallasor San Antonio.”

In 1984, Reyes established Reyes Industries Inc. and shortlythereafter was awarded a million–dollar contract from the Departmentof Defense making cots for the military. He moved the businessto San Antonio, however, in 1994 following repercussionsfrom the North American Free Trade Agreement in which he lostmany of his Laredo laborers.

Reyes’ two sons are involved with the family business. Fred,39, is involved in the day–to–day operations of Reyes Industries,while Jason, 34, assists withReyes Automotive Group.His wife, Norma, to whomhe has been married 39years, has been the rock athis side, he says.

Meanwhile, the companywas taken to a wholenew level when Reyes receiveda call in 2004 fromToyota officials, asking if hewould be interested in beinga Tier–1 supplier. ReyesAutomotive Group joinedwith Lear Corp. and Am–Tex Corp. to supply worldclasstrim components forthe Toyota Tundra.

“What Toyota did for us, especially the four local suppliers,was they gave the minority community the opportunity to workwith them at such a high level. That was huge for us,” he says. “I tellpeople all the time (as chairman of the Hispanic Chamber) if youwant to have an opportunity like I have you need to be involved.

“No one is going to call you if they don’t know you. But if theyknow you and trust you, when an opportunity comes up, youmight get that call.”

Reyes is serving his second year as chairman of the San AntonioHispanic Chamber of Commerce. Its mission is to advocatefor the growth of Hispanic businesses and act as a guiding forcein positioning the Alamo City as a national leader of successfulHispanics in business.

“What I enjoy most about working with the chamber is that Iinteract with a lot of young, bright talent who have great ideas,” hesays. “I have a tremendous board that is committed to helping SanAntonio.”

Aaron Seaman, the chamber’s chief operating officer, saysReyes has provided great leadership for the Hispanic Chamberduring difficult economic times.

“He has made it a priority to lead by example, often serving asa mentor to students,” Seaman says. “One thing that makes Fernandoso special is that he has never forgotten his roots and hasmade it a priority to give back to the community where he grewup. As a product of San Antonio’s South Side, he has establishedhis businesses (there), creating hundreds of jobs and contributingto the local economy.”

A strong believer in education, Reyes jumped at the chanceto serve as El Rey Feo LX this year by raising $433,160.60 forthe annual Rey Feo Scholarship Program. “I saw it as an avenueto give back to the community and promote education,” he says,adding that his royal dutiesinvolved visiting 68 schools.“I was blessed to have greatfamily, friends and corporatepartners, who have bighearts and opened theirwallets to help raise moneyfor a good cause.”

Recently, Reyes threw hishat in the ring for the mayor’sseat. His decision not topursue political office afterall is based, he says, on “badtiming.”

“In business, you have toknow whether the timeis right to move forward,and for me the timing wasn’tright,” he says. “I didn’t want to turn my back on (Toyota) that hadgiven me a tremendous opportunity, or turn my back on peoplewho are somewhat dependent on me, which are my employees.

“I talked to people, and I found out it takes a lot of hard work,commitment and money. I admire people who want to go intopublic service. But I have to do it for the right cause, and I can’t doa good job if I’m going to be a part–time mayor.”

For now, Reyes is content and thanks God for all the blessingshe has received, as well as the personal and professional experiences– good and bad – which have helped him get to where he istoday.

“I went to the school of hard knocks. It’s very painful and difficult,”he says. “Life experience is so important. It’s what you gatherand learn. It’s not about the position or title. You have to be preparedbecause when opportunity knocks, that’s when success happens.Otherwise it’s going to go to someone else.”

For more information, visit reyesautomotivegroup.com or militarycot.com

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