Key Points From the Interview
oday's guest developed a thesis early in his search.
He wanted to digitally transform a manufacturing business.
And more than just the standard playbook of putting in a CRM or ERP, Lucas Philips wanted to transform the business's very model.
He found a great target to do just that, and since 2021 has been at it.
The business he bought is a manufacturer of interior upholstery parts for vintage automobiles. Think replacement carpeting for your 1970 Plymouth Cougar.
The business historically sold its product through dealers; Lucas stood up an ecommerce business, selling direct to customers.
Today's interview is a deep dive into how he's done it.
It has been brutal:
He suffered fetal position moments, lost a relationship, turned over the entire team he inherited, and has hardly paid himself.
It has also been fruitful:
He's made incredible tuck-in acquisitions; digitized the intellectual property that was all literally just hanging on a dry cleaning conveyer on the factory floor; widened the moat of the business; refined the manufacturing process; and built the ecommerce business that he envisioned.
Today, over a third of Newark Auto's revenues come from DTC ecommerce, and that number will only grow. Overall, sales at the business are up 60% under Lucas's ownership.
Here he is, Lucas Philips, owner, transformer of Newark Auto.
