“I remember saying to myself, ‘Well, I’m a third generation.’ I knew the odds were against me,” Schwarzberger recalled. But he has beaten the odds—and then some. Today, Schwarzberger has plans to one day successfully pass down the business to his nephew Ryan Israel, who is already working in the company as a salesperson. Making it to the fourth generation of ownership is a feat that as few as 3% of family businesses accomplish, according to figures compiled by Cornell’s SC Johnson College of Business.

So, how did Schwarzberger do it? He saw what many third-generation family business owners were missing: reinvention. “You can’t keep doing stuff the same way. After 70, 80 years, it’s impossible,” he said.

From the windy city to the lone star state
For Schwarzberger and ABM International, reinvention meant picking up the business—and, with it, his entire family—to move from Chicago to the Houston area. The move initially was part of ABM International’s downsizing—though, with Bank of Texas’ financing, it would later lead to the company’s growth surpassing even Schwarzberger’s expectations. For instance, the company’s new home would later yield a previously untapped market for ABM International—home hobbyist quilters. Quilting is much more popular in the South than in ABM’s former home of Chicago. In fact, Houston is home to the largest annual quilt show each fall in the U.S.

But Schwarzberger had no idea of the success to come when, after being in the business his entire life, he became president of ABM in 1996, a time when the textile industry was moving out of the U.S. overseas to countries like China and India.

Given that historically ABM’s largest clients were textile mills making bedding, the closure of many U.S. mills was a major blow for the company. “There was a decade of downsizing, adjusting, shrinking and survival mode,” Schwarzberger recalled.

But then opportunity came knocking. First, it was a call from General Motors; they were looking for a machine that could stitch car headline (the interior roof of a car). Then, calls came in from marine boat, airplane and RV manufacturers—all looking for machines that could stitch interiors.

An ally for all your expansion needs
ABM International’s third evolution—this time, not in name but in client base—meant the company needed more space to meet demand. Fortunately, the company already had purchased 30 acres of land in Montgomery, a small town around 55 miles north of Houston. ABM built five warehouses there, and then planned to expand operations by constructing a two-story office building—but that would take a construction loan. That’s where Bank of Texas came in.

The Houston commercial banking team at Bank of Texas, sat down with Schwarzberger, learned what ABM was seeking to do and then set out to help get it done. “Neal’s a no-nonsense kind of guy. He wants to get things done, and we were able to make it happen,” said J.W. Parnell, commercial banking market team leader.

In February 2018, ABM was approved for a construction loan to start work on the company’s new headquarters—but the project proved to be more time-intensive and costly than what was anticipated. ABM went through three builders; the project took a year longer than expected and went 50% over budget. Bank of Texas approved a second construction loan for a total of more than $1.1 million.

Today, Schwarzberger said he appreciates the confidence that Bank of Texas gave him, even when it became apparent the project would go over budget. “Bank of Texas stuck with us on the project and didn’t make me go find some other lender. They believed in it; they believed in us. They helped us see it through,” he said.

“Bank of Texas stuck with us on the project and didn’t make me go find some other lender. They believed in it; they believed in us. They helped us see it through.”

Neal Schwarzberger,president of ABM International, Inc.

Looking forward to the next generation
Schwarzberger says he never dreamed ABM International would achieve the level of success it has now. “I have to pinch myself some mornings because I can’t believe how far we’ve come. It has absolutely been the most incredible journey ever,” he said.

His two daughters are pursuing careers in medicine and law, so he s looking forward to his nephew Ryan someday taking ABM’s reins. “I just look at the way the landscape of the world has evolved in my short lifespan, and I can’t believe I actually was able to pivot, maneuver, change and grow this business again. We’re now set to certainly operate the next 30 or 40 years off of the work I’ve done.”

And Bank of Texas has become part of journey, too. “It’s not just a transaction. I’m not there to just discuss business. I want to have a relationship with my clients,” said Erik Olson, commercial banking Houston market manager at Bank of Texas. Like Parnell, he also is on the Bank of Texas team working with ABM. In Schwarzberger’s words: “It’s been great to allow you guys to become part of our family.”

“It’s not just a transaction. I’m not there to just discuss business. I want to make a relationship with my clients.”

Erik Olson,Commercial Banking Houston Market Manager at Bank of Texas