The creation of new products and services is critical to accommodate the fluctuating needs of customers and target markets. As the demand for a product grows or even shrinks, businesses have the power to develop innovative offerings that can revolutionize how things are done. If a single sector is controlled by one or multiple companies, this can drastically harm consumers and the market overall. America experienced the harsh consequences of these monopolies during the Industrial Revolution when commodities–particularly steel and oil–were being controlled by an elite few. Whether speaking about Rockefeller or Carnegie, antitrust law is critical for a healthy business environment. Limited competition creates loopholes for price gouging and it prevents necessary innovation from occurring. In some industries, a lack of competition can lead to serious consequences such as economic collapse and physical harm. For Steven Farrelly, the founder of DRVN Enterprises Inc., a certified Small Business Enterprise in Connecticut, his struggles involved the material manufacturing industry.
Material manufacturing, procurement, and commodity distribution is a thriving sector empowering companies and individuals to access the products they need. DRVN Enterprises mainly offers salt, bagged ice melt, topsoil, sand, gravel, and mulch. Other organizations have a wider selection of materials. However, what happened to this Connecticut small business can happen to anyone, and is important to be aware of.
DRVN Enterprises was founded in 2000 and has quickly become a leading manufacturer and distributor of aggregate earth materials. Since its inception, the business has partnered with private contractors, municipalities, and public and private businesses. DRVN Enterprises founder Steven Farrelly began importing and distributing bulk road salt in 2014 after a major shortage in Connecticut. Farrelly’s decision to enter this new industry was inspired by two factors. Relatively zero businesses were serving this increasing need and consumers were desperately looking for a reliable distributor who could provide a high-quality product every time.
DRVN Enterprises established its salt operations at the State Pier in New London, Connecticut because of its strategic location. In this southeastern city, residents and businesses had been struggling to procure road salt for over 15 years due to unreliable vendors and high prices. When DRVN Enterprises began offering products there, it tapped into an overlooked market. The company quickly multiplied its deal flow in a few years, building strong relationships with hundreds of clients relieved to have DRVN Enterprises nearby.
DRVN Enterprises became the first Connecticut-based business to compete on local bids. Before, national corporations had control over this market. In some senses this was positive, but it did hurt local economic growth. By the time the State Pier in New London changed its terminal operator, DRVN Enterprises was responsible for one-third of the road salt being delivered. The company has contributed over 1 million metric tons of bulk salt since its creation, stimulating over $500,000 in additional state revenue. DRVN Enterprises serviced over 70 municipalities, 14 state transportation departments, and numerous private and public institutions. These connections have dwindled since the company was evicted from the State Pier by a new terminal operator.
The entity that took ownership of State Pier originally stated that it aimed to create a multi-use port. However, this was not the case and the port transitioned into a single-use port for the offshore industry in partnership with companies outside of the US. This left multiple US entities displaced and their businesses were crippled by the pressure of rapidly relocating operations.
“When DRVN Enterprises was evicted from State Pier it was a sad moment because the company was protecting public safety with our salt operations and also driving prices down for consumers,” Farrelly says. “Once we had to move, I was concerned about how the business could retain its competitiveness, high customer satisfaction, and quality assurance if we no longer had access to this deep water port. We are still rebuilding the business since this roadblock first occurred, but I am hopeful that our experience being manipulated into leaving a market showcases the protections small businesses need against monopolies.”
Since DRVN Enterprises has shifted operations away from State Pier, the company has continued providing top-quality materials to its clients. The trials and tribulations DRVN Enterprises has encountered have challenged the company’s growth, but they haven’t prevented it from reaching its full potential. Farrelly hopes that this tale of resiliency highlights the dangers of monopolies while showcasing the strength of American small businesses.
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Name: Steven Farrelly
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