Charles L. Harris III

High Performance Coatings Specialist
Former D1 Athlete 🏀
Focused on industrial SMB acquisitions: Coatings, Sandblasting & Fabrication.
🇨🇱

[Charles L. Harris III @HoustonSearcher]

I’m building a Gulf Coast industrial services company.

The mission is simple:

Acquire and grow businesses that protect, maintain, and extend the life of critical industrial assets.

I’m focused on industrial coatings, blasting, tank linings, asset integrity, and adjacent industrial services.

Over the next 20 years, I hope to turn one small industrial contractor into a regional industrial services company through operational excellence and disciplined acquisitions.

I’ll share what I’m learning about industrial markets, acquisitions, and building an enduring business.

If you’re in industrial services or know an owner thinking about succession, I’d love to connect.

[Charles L. Harris III @HoustonSearcher]

@jimbelosic @photoncmndr It sounds like the bottleneck usually isn’t cutting metal.

It’s the specialized processes that happen before or after fabrication.

Coatings gets overlooked until it’s on the critical path. One spec change or one approved applicator with a backlog can hold up an entire project.

[Charles L. Harris III @HoustonSearcher]

@SMB_HEFF He said no 😔

[Chris Ramsey | SMB and R.E. @ChrisRamsey60]

Post everyday.

Everyday they need to know that you’re looking for deals.

You need to be on the top of broker, sellers, owners minds every single day.

[Charles L. Harris III @HoustonSearcher]

@ChrisRamsey60 For industrial acquisitions, do you generally prefer buying the real estate with the business, or acquiring the operating company first and purchasing the property later?

Seems like there’s a lot more nuance than “always buy the dirt.”

[Charles L. Harris III @HoustonSearcher]

I can name more owners of blast shops and fab shops than I can brokers that sell them.

There has to be people who specialize in these deals.

Who are the go-to brokers for industrial services businesses? Blast & paint, fabrication, machining, tank repair, asset integrity, etc?

[Charles L. Harris III @HoustonSearcher]

@resolvedmotion I agree

[Charles L. Harris III @HoustonSearcher]

Everyone wants to own the next big manufacturer.

I’d rather own the business every manufacturer depends on.

The winners will change.

The need for coatings, inspections, maintenance, fabrication, and asset integrity won’t.

Don’t buy the company betting on the industrial boom.

Buy the company that gets paid regardless of who wins.

[Const 🇺🇸🏭 @c0nst]

https://t.co/KAWRkGlnB7

[Charles L. Harris III @HoustonSearcher]

@MFG_SMB @BuyTheNumbers_ @c0nst @Michaelkornuta I appreciate everyone sharing their perspective. It sounds like buying isn’t the shortcut people think it is, but neither is building from scratch. The edge comes from understanding exactly what you’re buying.

[Charles L. Harris III @HoustonSearcher]

I see the logic, but doesn’t that depend on the industry? In blasting, coatings, and fabrication, you’re not just buying equipment. You’re buying customer relationships, experienced craftsmen, permits, certifications, and years of reputation. Given how hard those are to recreate today, wouldn’t acquisition often be the faster path?

[Charles L. Harris III @HoustonSearcher]

@_brianpitts It’s been tougher than I expected. I’m specifically looking for industrial blast and paint shops, fabrication, and asset integrity businesses. The best opportunities seem to trade through relationships before they ever hit a broker.

[Charles L. Harris III @HoustonSearcher]

@c0nst @Michaelkornuta why you’d start from scratch? Is it the equipment, the people, or the liabilities that make acquisitions less attractive in your view?

[Charles L. Harris III @HoustonSearcher]

I think these businesses are overlooked because they don’t scale like software, but they compound in a different way. The industry im searching a good blast shop, fab shop, or coatings contractor can quietly serve the same customers for decades if they consistently do quality work.

[Charles L. Harris III @HoustonSearcher]

@Michaelkornuta @c0nst As someone looking to acquire a business in this space, would you rather buy from an owner who’s retiring, or look for a shop that’s shutting down because the owner doesn’t want to deal with all of this anymore? It seems like those are two very different opportunities.

[Charles L. Harris III @HoustonSearcher]

@Wealth_WZRD Industry experience or willingness to learn is key

[Charles L. Harris III @HoustonSearcher]

When you say they’re being regulated out of existence, what specifically is driving it? Is it one regulation that’s had the biggest impact, or is it the cumulative cost of permitting, compliance, insurance, and everything else that eventually becomes too much for smaller operators? I’m curious whether it’s making it harder to start new shops, or pushing established ones to close.

[Charles L. Harris III @HoustonSearcher]

@Michaelkornuta @c0nst I think we’re going to see more appreciation for these businesses over the next decade. The companies that keep critical infrastructure and manufacturing running don’t make headlines, but they’re incredibly difficult to replace once they’re gone.

[Charles L. Harris III @HoustonSearcher]

@ChurchillWw Appreciate the explanation. I didn’t realize partial fills were such a limiting factor for membrane tanks. Are there any new containment technologies you think could eventually challenge GTT, or has that become the industry standard for the foreseeable future?

[Charles L. Harris III @HoustonSearcher]

Everyone wants to know what a business earns.

I’m becoming more interested in why the employees are still there.

Everybody can clean up financials.

Show me the guy who’s had the same crew for 15 years.

Show me the foreman customers ask for by name.

Show me the painter who refuses to let bad work leave the shop.

Revenue can grow.

Margins can improve.

Finding another great craftsman? That’s getting harder every year.

The disappearing craftsman is becoming more valuable than the disappearing multiple.

As I evaluate industrial coatings, blasting, and fabrication businesses, I’m realizing I may be buying the people more than the P&L.