High-wire act

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Business is looking up at Ropeworks Inc., which doubled revenue and staffing last year after moving operations from a 500-square-foot home office to an expansive 7,500-square-foot facility at northwest Reno's Riverside Commercial Center.

And, says president Jan Holan, the company needs to grow another 50 percent next year to pay for overhead of its larger space.

"We'd like to see growth at around 25 percent," he says. "To keep things interesting without being overwhelming. We feel that's attainable without seeking outside capital."

Ropeworks provides work-at-height training to companies that field jobs far afield and far above the ground. Safety is paramount for workers on dams, bridges, oil rigs, wind turbines, and communication towers.

So Ropeworks trains them in rope access, tower climbing, fall protection and rescue. Consulting services include safety audits, work procedures, equipment inspection, rescue protocols, and custom training materials.

While training such workers has largely been left up to employers, winds of change are wafting from California. CalOSHA now requires that employees performing rope access are trained in access and rescue techniques according to a written operating procedure and receive annual refresher training that involves a skill evaluation.

And Ropeworks is rigging up to provide the training.

Already it fields 20 employees who travel the globe to train technicians, engineers and others who may be called to mount a rescue. While OSHA says an employer must able to provide expedient rescue, firefighters may be called in so they need training, too.

Major clients include Pacific Gas and Electric, Chevron, and engineering firms.

In addition to training groups and individuals, the company sells training equipment from its Web site.

"Most equipment requires training to use properly," says Holan.

Employees require training as well. Ropeworks commonly hires out of its own training programs. Those interested in the work often take a closer look by enrolling in a training program. Individuals pay about $1,000 for the week-long class. Companies wanting group sessions pay a rate based on their requirements.

At a service company, the employees are on the front line. And Ropeworks fields a philosophy that puts its training personnel first.

"We run an open-book company," says Holan. "They see where all the profits go." Some already go to employees via a profit-sharing plan, and Holan says his goal is to share 40 percent with the staff.

"I'm committed to creating a democratic workplace," he adds. "That makes it feel like more of a team environment. And, I'm not looking over my shoulder.

"Clients just called from Washington DC to say 'I can't believe how motivated and committed these people are.'"

While Holan brings on new clients, Chad Schearer handles logistics and schedules; Greg Jones fields equipment sales, and Carolyn Arnold manages the office and accounts.

"But we all wear many hats," Holan adds.

Marketing a specialty enterprise worldwide takes a shotgun approach.

"We're active in trade organizations," says Holan. He's president of Society of Professional Rope Access Technicians, which has certified hundreds of specialists.

Ropeworks hasn't got a lot of competition. But it has got challenges.

"There are few models on how to build this kind of company," says Holan. "We're creating a market."

Conversely, he says, standard business teaching says it's much easier to take market share than to build it.

Building a niche company also means spending effort to create industry standards. "That's a major drag on profitability," he says.

For instance, OSHA looks to industry organizations to see what standards have already been set, and what skills people in those fields need to demonstrate.

"Building something from nothing is always challenging," he adds. Holan started the company solo, working out of his house in Truckee. Growth was financed by credit card and home-equity loans.

Another challenge: "Learning to lead and not micro-manage." At Ropeworks, Holan finds himself running a business larger than any he's ever worked for.

Insurance was another conundrum. Despite having no injury claims in 12 years, finding insurance for work-at-height training was tricky.

"They don't have classification codes for us," Holan explains.

It took several brokers to piece together the coverage needed before Lloyds of London wrote the policy.

The business has a perceived risk far higher than shown by real statistics, he says.

But the high-wire market goes beyond training.

Ropeworks will be spinning off its rope access services business to the Skala Group (Skala means cliff in Czech), a subsidiary specializing in industrial work-at-height services. The Skala Group will deploy professional engineers, technicians, geologists, and welders for inspection, maintenance, and construction.

Ropeworks grew out of a mountaineering program Holan ran while a student at University of California, Davis. He had fallen in with climbers as a teenager.

Shortly after the 1994 Northridge earthquakes rattled Southern California, the state's Department of Transportation called, wanting to train its bridge inspectors. The dam inspection division started after Folsom Dam broke in 1995, flooding Sacramento. Caltrans again called, needing training for a sister agency, Department of Water Resources.