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A Greek Industrial Success Story
I spent the morning visiting Plastika Kritis, one of the largest Greek plastics manufacturers and a company that my uncle, John Lebidakis, founded with the help of my grandmother's brother. It's a well established company and a true sucess story in Greek industrial manufacturing. My uncle also started a credit union here in Crete, so I had a chance to speak with him about the Greek economy. One thing he made clear to me: Greece will not leave the Eurozone as this is not in the best interest of Greece or Europe. "There are too many interests at stake to let Greece leave the Eurozone. I simply do not see this as a realistic option."
On the Greek economy, he emphasized that the biggest problems are competitiveness and the underground economy. "If you look at the scale of the problem, it's daunting, but not impossible to rectify. We need to adopt long-term measures to address these issues."
My uncle is a self-made businessman who still pulls in crazy hours in his early seventies. He took my father, myself and an other uncle of mine on a tour of his plant, explaining to us in intricate detail every step of the manufacturing process. His two sons, Michael and Emmanuel, both engineers, have graduate degrees from INSEAD business school, and run different operations of the business. My aunt is retired but is still pulls long hours at the business (we call her the CFO). Another uncle of mine who also retired, goes in every day to help the accounting department.
Although shares of Plastika Kritis float on the Athens Stock Exchange, the bulk of the shares are controlled by the immediate and extended family. The way they operate is by distributing 25% of the profits to shareholders and reinvesting 75% of the profits back into the business. I saw with my own eyes the revamped robotics of some manufacturing steps, which according to my uncle boosted productivity by 30%. My uncle believes it's important to reinvest back into your business to keep up-to-date with the latest technology in manufacturing. He also believes in R&D, which is why he has hired full-time researchers at the plant.
Why do I share this with you? Because there is a misconception that Greeks are lazy and don't work hard. Plastika Kritis isn't the only Greek industrial success story, but it's one that's close to me as I grew up watching them nurture that business over the years. I am proud of my uncle and my family, but there are many other equally impressive stories in the Greek private sector.
Over the weekend, Greece's Prime Minister, George Papandreou, gave an important speech on the economy, and stated that no new austerity measures are needed to avoid default. I certainly hope so, and while everyone is negative on Greece, I see enough human capital and industrial sucess stories to inspire confidence and make me feel good about Greece's future.
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Thanx Leo. I sure enjoy a simple and optimistic post once in a while.
Plastics....gross...nice pool of it in the pacific...machine that can make plastics gas for your Ferrari...then I will listen to this drivel of some little rich boy touting his family like he knows what to do and has done anything on his own. This site has got to stop posting this or he pays them or something.
Leo - thanks for the slice of life. I'd actually like more of them. Do you know other small Greek businesses that you could highlight from time to time? How does volume of trade with Europe compare to volume of trade with the East (Turkey, etc.)? Etc.
I like the part that they generate their own electricity.
I am not a "little rich boy", and my uncle, who is wealthy, has the hardest work ethic, which he has instilled in his sons. They easily pull in 12 hour days at the plant, and they used to pull in longer hours.
Thanks for sharing Leo.
You take a lot of crap here, I admire you for continuing to contribute.
Thanks, Leo.
A great success story and an even better example for those of us here in the U.S.
The small to mid-size business that is privately held but soundly run is the backbone of all successful societies - here and in Greece.
Both Greece and The U.S. could use more men like him.
Tell you what - if I were President, I'd trade ten banksters for your uncle and his family - even up. I'll even throw in Goldman's next two top draft choices from Harvard BS school.
How about it, Leo?
I knew it: Leo is worth billions!!
wonderful! greek culture is quite beautiful :)
http://covert2.wordpress.com
Is it safe to assume that profits are accurately reported and appropriate taxes paid to the Government? If not, he's part of the problem. If so, he's is likely one the dumbest guys in the country.
No chance the factory is paying all its taxes, or it would be out of business.
My parents are from Greece. When I was in school, I would spend entire summers there. I've been ALL over that country. Yes, there are those who are hard working but for the majority of the nation they are lazy. I HATE to admit it but it's true and until the people there are willing to make the following hard changes, it'll get worse before it gets better (if ever).
Until all of this changes, it'll just be more of the same crap.
Wow, everybody's jumping on Leo for this, WTF?!
All he did is point out some of the people (who he happens to be related to) that are preventing Greece from becoming a third world country!
Businesses of this size (manufacturing companies with ~25-2500 employees) are the main driver of employment, and the growth and multiplication of said are absolutely necessary if the Greeks are to ever have a recovery.
Hopefully they will figure that out as well and encourage them with favorable business conditions.
This is the only hope, for not only Greece, but the world.
no one wants greece to go belly up . very positive post leo and you should be proud of your family.
i will say that the problem is no longer just the piigs. it is global and in the process of collapse. prepare yourself and your loved ones for hard times. family will more important than anything soon enough.
Leo, congrats on the family success story - really.
I'm no expert on Greece, but the article ignores the elephant in the room. How does Greece, or any country, pay back or even roll all of its debt when debt/GDP is greater than 1 AND when interest rates > growth rates? Even the subsidized interest rates are 5%. Current growth is negative, trend growth is inflation rate or thereabouts.
It's a debt spiral.
How a factory, not matter how nice, could affect Greek default escapes me. Leo, why don't you read the Michael Lewis article in Vanity Fair and tell us why it is inaccurate?
Funny your uncle didn't mention the problem of all the tax cheats. I can't help but wonder if your family there pays their fair share of taxes.
Sure he did, and trust me, they have paid their fair share of taxes.
leo cut the crap why now??? not 3,5 month before
i think you're long GREECE..
true is its crappy country, none is good over there..
turks fucked all of you for many centures..
you're only free as probably a few dozens years.. and its included
black colonels regime..
alx