Dental supply company opens TRIC distribution center

The success of an acquisition in Arizona in 2009 convinced executives of Benco Dental Supply to expand their West Coast presence to capture more market share in the region.

Benco last week officially opened a 100,000-square-foot distribution facility at Tahoe Reno Industrial Center. When at capacity the facility will stock more than 21,000 items, from toothbrushes and dental floss to dental drills, lighting systems and composite materials to make crowns.

Two years ago Benco purchased a small company in Arizona to act as a gateway into western markets, says Lou Mangino, vice president of operations for Pittston, Penn.-based Benco Dental. Sales throughout Arizona flourished, and Benco executives quickly began scouting western locations for a distribution facility that would further expand their reach.

Benco formerly filled orders for dentists in the West from its distribution facility in Dallas.

"It was kind of like a test," Mangino says. "We saw how fast we grew in Arizona, and that's when we made the decision to get Reno up and running.

"We think the market is right for more competition out here," Mangino adds. "From this location we can serve probably 98 percent of the population on the West Coast with one-day ground service."

Paul Jackson, vice president of marketing, says any company needs a certain amount of volume in order to establish an additional distribution center, and the rapid growth in Arizona gave Benco a strong position from which to expand.

Benco has enjoyed double-digit growth in 2007 and 2008, Jackson says, and single-digit growth throughout the recession. Sales figures are trending upward for 2011 as well, he adds.

"Our competition is not up like that, and that means we are taking share," Jackson says.

Although tenant improvements to the facility on Waltham Way proved easy, Mangino says, it took much longer for the company to clear the regulatory hurdles of getting drug distributor licensing to sell its products in neighboring states.

Mangino says that despite researching locations in neighboring states, the company kept returning its focus to Northern Nevada.

"The construction contractor, the local authorities and governments, made this the most simple project," he says. "Everybody was so helpful. We did look at Salt Lake and areas of California, but we kept coming back here because EDAWN wanted this kind of recession-proof business. Dentists are always going to be out there."

The Economic Development Authority of Western Nevada represented the company for state incentives at the Nevada Commission on Economic Development. Benco created 15 new jobs and is expected to add a $1.7 million annual economic impact to the region.