Medical Distribution Hall of Fame
Gerry LoDuca, an inductee into the Medical Distribution Hall of Fame, founded and built DUKAL Corp. into a $100+ million company selling high-quality, low-cost medical commodities and disposables. And he did it using one principle above all others: Treat people like family, whether they are employees, distributors or contract manufacturers, and whether they are in Long Island, California or China.
“Everybody likes a good life, no matter who they are or where they live,” he says. “They want to be treated fairly, they love their families, and they want to be treated with respect, care and understanding.”
“Gerry has been a leader in partnership-driven business practices in our industry,” says Heather Llorca-Kropp, vice president of marketing and channel management for DUKAL. “He has emphasized ethical and transparent relationships while bringing our distributor partners new, innovative and competitive products every year. He values the friendships and promises he makes and is widely respected for it.”
Adds John Brezack, president and CEO of Dale Medical Products, “Gerry is the patriarch of a wonderful family and a terrific company, whose employees adore him. He is revered throughout the industry, and is quick to help anyone who seeks his advice or assistance.”
The $149 calculator
LoDuca was born and raised in Malverne, Long Island. His father, Arnold, started working in the photo engraving/printing business after the eighth grade, and didn’t retire until he was 73. Gerry’s mother, Helen, a stay-at-home mom, was the driving force behind the family’s move from Brooklyn to Long Island. “She didn’t like the environment, the density or the horse racing” in the borough.
After graduating from St. John’s University in 1976, LoDuca decided to pursue a career in sales. But he knew he needed Sales 101 experience before landing a job in an industry that would suit him long-term. So he became a salesman for Beta Business Products, a distributorship for business machines, such as Sony dictating machines (which sold for $270 at the time), transcribers ($1,195) and Texas Instruments four-function calculators ($149). He – like the other reps – received $150 for two weeks, then went on straight commission. “I met some real characters” among the Beta reps, he says. “I learned a lot about selling, how to treat people.”
One year later, he took a job with IPCO Hospital Supply, which distributed medical products to hospitals and nursing homes in the New York area. It turned out to be a good fit.
The entrepreneur
“I fell in love with the industry,” he says. He was exposed to a vast number of products, from dietary, to central supply, sterilization, infection control, medical/surgical, textiles. And unlike the calculator business, in which sales tended to be of the one-and-done variety, medical sales offered an opportunity to build long-term relationships with customers. “I still have friends I talk to today who I met then,” he says.
One day, while sitting in a customer’s office at Maimonides Medical Center in Brooklyn, LoDuca ran into another salesman, Joe Meringolo, who had started a manufacturing company called Medical Action Industries (now part of Owens & Minor). The two hit it off and ultimately, Meringolo asked LoDuca to join him at Medical Action. With the help of some wedding-gift cash (he had just married Donna Glover), LoDuca bought into the company in 1979. At the time, sales were about $400,000. “I stayed there 11 years; we made every mistake possible; but we built the business one hospital at a time.” When they took the company public, sales had reached $25 million. (By the time the company was acquired by Owens & Minor in 2014, net sales were close to $290 million.)
LoDuca’s responsibilities included traveling to China, where he built relationships with the country’s import/export companies. “That was how all business was done there at the time,” he says “The factories were owned by the government, the import/export companies were government-controlled too. But they were happy to sell to me.”
In 1991, given his knowledge of medical sales and manufacturing, along with his experience working with suppliers in China, LoDuca decided to start his own company – DUKAL Corp. He sensed an opportunity to sell good-value, good-quality, less-expensive wound care products for the nursing home and physician markets.
Growth
He spent many hours explaining the American medical products industry to potential suppliers in China, including the quality and regulatory requirements of producing for the American market. And he spoke to them about the competition their products would face in the U.S.
“I always tried to speak in the spirit of partnership and mutual success, that is, emphasizing what we – together – needed to do to in order to compete and build a successful market,” he says. That approach built trust and long-lasting relationships. In fact, one of DUKAL’s top suppliers today is the son-in-law of the company’s very first supplier. Since the early days of the company, LoDuca has traveled to China more than 80 times. Of DUKAL’s 110 suppliers in 11 countries, 80 are in China.
Gerry and Donna worked well past midnight many nights, expanding DUKAL’s product line and breadth, and customer base. (DUKAL began in 1991 with one product; today, it carries about 3,000.)
“Customers would ask us, ‘Have you ever thought of selling this product at a better price?’” he says. He would take samples to China to see if his suppliers could produce a similar product at the right quality and price, and capacity. “It’s always nice to have someone willing and ready to buy the product – my cornerstone customers,” he says.
Donna remains active in DUKAL, serving as vice president of human resources. Their daughter Aimee joined the company in 2017 as creative director, after working in branding and advertising for 10 years.
LoDuca grew the company by acquisition as well, its first significant one being Hermitage Hospital Products in 2005. Others followed, including certain assets of Donovan Industries (2012) and American White Cross (2016). Not only did the acquisitions grow the company’s footprint and product portfolio, but they also brought new talent and skills to DUKAL, including Chris Brooks (who currently is DUKAL’s vice president of sales) and John Grasso, who revamped the company’s warehousing and distribution strategy.
Distribution ties
A member of the Health Industry Distributors Association Educational Foundation Board, and 2018 recipient of HIDA’s John Sasen Leadership Award, LoDuca has always valued his relationships with distribution. He has also served as a member of the vendor advisory council of ROi, the supply chain organization of Mercy; and as president of the Healthcare Manufacturers Management Council.
He takes very seriously DUKAL’s program mentoring students in the Business Plan Competition and Executive-in-Residence program at his alma mater, St. John’s University (where one of his professors of 50 years ago still works).
“I let the students know that the uncertainties they are facing are no different than those of the generations before them,” he says. “I tell them, ‘If there’s uncertainty in your lives, don’t be afraid. You will face tremendous successes and failures in your lives. This is normal. Set your own goals, work hard and diligently.
“And treat people how you want to be treated.”
Speaking of Gerry LoDuca
John Brezack, president and CEO, Dale Medical Products
“Gerry is warm and reaches out to everyone he knows, no matter what the setting. He will quickly share a story and a drink, or play his guitar and reminisce about his days in a rock band. Gerry will not just give you advice, but will write you a referral, recommend you to his associates, or loan you one of his staff if needed. He has always been open and helpful to me and my family, and to all Dale employees who have interacted with him.”
Heather Llorca-Kropp, vice president of marketing and channel management, DUKAL Corp.
“What makes Gerry unique is his sense of humor and his ethics. Anyone who knows Gerry would tell you that. He is one of those people who sees the joy and laughter in life and work, and has built an incredible family culture at DUKAL.”
Jack Addicks, president, Keystone Consulting Associates, LLC
“Gerry is one of the most credible and genuine individuals that I have had the pleasure of working with during my 50 years in business. A good role model for ‘early professionals’ – Work hard, hire good talent to help run a business, have your thumbprint on the business, yet get out of the way and let them contribute to its success.”
Mark Seitz, president and CEO, NDC
“What makes Gerry LoDuca unique is the magnitude of his passion for his family, his employees, his friends and our industry. The evolution of DUKAL Corp. under Gerry’s leadership should be a business school case study as to how a strong culture combined with talented leadership translates into commercial success. DUKAL, through Gerry, has made investing in the industry a priority. Whether it’s the Health Industry Distributors Association, the HIDA Educational Foundation, Healthcare Manufacturers Management Council or Professional Women in Healthcare, Gerry and the DUKAL team are always present and always participatory. Gerry LoDuca lives a life of commitment – to family, to friends and to the industry he truly loves.”
Rob Saron, senior vice president, global distribution, Symmetry Surgical
“Gerry both listens and cares about the people he does business with. Every body listens, but he REALLY listens. He appears to be friends with everyone in distribution. What is not to like?”
Mike Racioppi, senior vice president and chief merchandising officer, Henry Schein
“Gerry enjoys life and he works hard. You don’t grow from zero to what DUKAL’s sales are today without a lot of hard work. He knows how to run a business, manage profits, reduce expenses. He’s also very good at the relationship side of the business. He is genuinely interested in people.”
An airport encounter
By Donna LoDuca
A good portion of Gerry LoDuca’s life has been in and around airports traveling for both work and pleasure. At home there is always a suitcase, duffel or tote in some stage of packing or unpacking. His favorite suitcase proudly carries an American Airlines luggage tag showing that he is in the 5 Million Mile Club … and don’t think he doesn’t throw this around any time he gets before a ticket or gate agent.
My best travel memory of Gerry was when we were flying out of a Florida airport and were passing through security (this was pre-TSA Precheck). The lines that day were horribly long and my son, in one of his usual Mickey Mouse t-shirts, was harassing us and others around him when we noticed a group of young servicemen being escorted through security rather quickly. Many people on the security line made a special effort to thank these soldiers for their service, which we thought was a bit unusual until we realized that most of the men had some form of physical combat injury that they were dealing with.
My husband at that point became a man on a mission. When we finally made it through TSA and realized we had some time before our flight, Gerry dragged us through the airport to find the soldiers so he could speak with them and buy them lunch. He opened his wallet and took out his remaining cash, handing it to the captain, who was speechless.
My son and I were talking to a twenty-something private from Pennsylvania who had lost part of his leg and arm overseas, and Gerry sat in the middle of the rest of the troop listening to everyone’s story. These young soldiers were travelling to Walter Reed Army Hospital in Washington, D.C., to continue their recovery and assimilation into society and each had a heartbreaking and heartwarming story to share.
When the soldiers’ plane was ready to board, the captain turned to Gerry and said thank you, and my husband replied, “I wish I could have done more for your today.” And while Gerry was wishing everyone a safe flight and wonderful life, all of the emotions built up talking with these wonderful men just spilled over and he started to sob like a baby.
After they left, Gerry and I were talking and he said to me, sarcastically, “Well, that went well?! I wanted to give them some joy and all I did was cry with them!” After a good laugh we realized that he indeed did change their lives, even if it was only to see a man cry happy tears, not sad tears.
Donna LoDuca is Gerry LoDuca’s wife