Leadership Corner: MIchael Fox
Interviewed by Catherine E. Toth
Advertiser Staff Writer
Name: Michael Fox
Age: 46
Title: President
Organization: Hawaii Modular Space Inc.
High school: Punahou School
College: Bachelor of science in environmental studies, University of Colorado
Breakthrough job: Lifeguard for the City & County of Honolulu, where he learned to stay calm and focused in stressful times. "I think that's really helped me in business," he said.
Little-known fact: Fox helped found the Professional Bodysurfing Association and the Professional Bodyboarding Association in 1980. He also won the title of World Champion Professional Bodysurfing in 1981 and co-organized the first televised bodyboarding event at the Banzai Pipeline on O'ahu's North Shore.
Major challenge: "To grow the business while making sure we are a community-minded corporate citizen, providing an excellent workplace and environment, and exceeding our clients' wildest expectation."
Q. You started this company in 1987 in your spare bedroom. Now Hawaii Modular Space has 40 employees and has become the largest distributor of mobile and modular buildings in the state. What do you attribute to that growth?
A. We have really, really good people, dedicated and hard-working and smart, goal-oriented. And they all enjoy what they do, we have fun ... I try to promote and encourage that in our culture and environment.
Q. You offer incentives to your employees. If they reach the company's goal, you take them all to Vegas. Why is that important to you?
A. It's the best thing we do. People look at me and go, "You're nuts." But IBM, Boeing and all the big boys do it. Small companies don't do that because they don't think they can afford it. But I would venture to say it's worth every penny. It's the best investment we make. It's morale-building. I'm definitely making a statement to our people that I appreciate what they're doing. It's all about thanking our people for their hard work and their commitment.
Q. You worked for six years selling office trailers with another company. Why did you want to start your own company? What's the appeal of running your own business?
A. Nothing. It's insanity. (Laughs) It's control of your own destiny. I do not like sitting in the back of the car or sitting in the back of the plane. I like to have my hands on the wheel, and there's a lot of that (in running your own business). I think there's also a certain personality type. You'll find that a lot of Type A personalities are entrepreneurs or business owners. They're wild and out-of-control and crazy. They don't want to take no for an answer. They like the challenge of solving the problem and finding the answer.
Q. Why did you think this industry would be profitable?
A. It's funny, it's such a niche market. When I first started in this business, I thought I wouldn't be in it for more than a year because I didn't, at the time, see the future. But every year as I continued to work, I would do business with more and different companies and meet really interesting people. My clientele was never the same. I got to see things starting from the ground up. A lot of startup companies use our products. As the years went by, I could see more and more the need and use for the product I was selling and how the product was improving and getting better and becoming more versatile and diverse.
Q. What kinds of businesses use these products?
A. We have more than 1,000 active clients right now. We do everything from construction site offices, which are our bread-and-butter, to government services and portable classrooms for schools. We did an entire Bank of Hawaii branch, medical facilities and scientific laboratories. There's such a huge diversity.
Q. With the recent boom in construction locally, have you felt any impact to your business?
A. Yeah, this is quite similar to the late '80s, early '90s in terms of feel, pace and growth. We're up 25 percent since the boom started about three years ago. (Business) has been growing 5 (percent) to 10 percent each year, I would say.
Q. That earlier construction boom was fueled by a strong Japanese economy. How is this boom different?
A. The classic line is, "This time it'll be different." I remember that. Now that I'm older, I've actually been through one horrific up-and-down market ... That time it was from Japanese, this time it's from the Mainland primarily. They're using discretionary income, they're wealthy and they're investing in Hawai'i because they feel it's a safe haven. Why not invest when the market's going up and be able to use your home, your investment, and enjoy it? There's double motivation there. People will say that's good because when the market comes down, people will still be coming and using their homes. But I question whether if the market goes down that will be a major factor. My thing now is having gone through that big market, what can we do to prepare ourselves for the next downturn? As much as you want to celebrate in this growth, I can't help but remember that lesson from that last downturn and try to plan for when the economy does turn again.
Q. How can you prepare yourself for a sudden downturn like that?
A. Manage your debt, manage your costs now, don't get in over your head, manage your risk. There's certain things that would be great and fun to do that have potential for huge returns. But if the market turns, will you be able to ride that out? That's a big concern.
